In March 2025, Taiwan experienced an increase in its annual inflation rate, climbing to 2.29% from February's nearly four-year low of 1.58%. Although this rate was slightly below the anticipated 2.3% forecast by market analysts, it signals a noteworthy shift. Despite inflation not being a primary concern for Taiwan's central bank in the immediate future, officials will remain cautious due to potential challenges following US President Donald Trump's recent decision to impose a 32% tariff on Taiwanese imports.
There was a marked acceleration in price growth for categories such as food, rising to 4.9% from February's 3.98%; housing costs edged up to 2.2% from 2.18%; miscellaneous goods and services grew from 1.14% to 2.97%; and health-related expenses increased to 2% from 1.9%. Furthermore, costs in education and entertainment bounced back to 0.8% compared to a previous decrease of 1.04%. On the downside, deflation intensified in the transportation and communication sectors, where it fell to -0.51% from -0.23%. Seasonally adjusted monthly figures show a reduction, as consumer prices decreased to a three-month low of 0.2% in March, following a downwardly revised 0.24% in February.
