FX.co ★ Taiwan Inflation Rate Lowest in 5 Years

In January 2026, Taiwan experienced a notable decrease in its annual inflation rate to 0.69%, down significantly from 1.31% in December and reaching its lowest point since January 2021. This marks the ninth month in a row that inflation has remained under the central bank's target of 2%. The decline is attributed to ongoing deflationary trends in the transportation and communication sectors, which saw a decrease of -1.95% compared to -1.34% in December, along with reductions in education and entertainment costs, which dropped to -0.97% from 1.69%. Additionally, inflation rates eased for food (1.16% versus 1.26%), housing (1.82% versus 1.86%), and miscellaneous goods (1.99% versus 3.26%). Conversely, price growth saw an uptick in the clothing sector (1.58% compared to 0.90%) and health sector (1.62% compared to 1.53%). On a seasonally adjusted monthly scale, consumer prices increased by 0.10%, following a previous rise of 0.14%.