Prices of food goods increase by 1.6%, leading to a rise in Consumer Price Index.

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2025 September 14 . 9:24 PM

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Inflation soars by 1.6% due to increased food costs

Prices of food goods increase by 1.6%, leading to a rise in Consumer Price Index.

The Consumer Price Index (CPI) in Taiwan rose 1.6% last month compared to the same period last year, according to Deputy Director Chen Kuan-chung of the Directorate General of Budget, Accounting and Statistics (DGBAS).

The increase was slightly faster than July's 1.54%, but Chen downplayed concerns about potential spillover effects from the 20% tariffs the US imposed on Taiwanese goods last month, stating the impact should be limited.

The rise in CPI was primarily due to Typhoon Podul and heavy rainfall, which drove up food prices. Food prices in the CPI basket climbed 3.18% from a year earlier, with pork prices surging more than 8% and vegetable costs pushed up by 10.9% due to typhoon-related damage.

However, higher train fares and vehicle maintenance expenses slightly offset the decrease in transportation and communication prices, which decreased by 1.34 percent, with fuel prices down 8.56 percent and airfares falling 5.36 percent.

Shelter costs advanced 1.8%, with a 2.29% rise in rents and a 5.08% gain in household management expenses. Core CPI, excluding volatile food and energy components, rose 1.74%. Core CPI remained comfortably within the 2% mark.

Inflationary pressure might ease this month if weather conditions stabilize, according to Chen. At the wholesale level, the Producer Price Index (PPI) fell 4.98 percent annually last month, primarily due to declines in chemicals, petrochemicals, metals, and electronics.

The New Taiwan dollar has appreciated about 7 percent this year, helping to drive import costs lower for the past five months. Prices of agricultural and industrial raw materials have shown mixed movements, further limiting tariff effects.

Healthcare costs increased by 1.75 percent due to hospital fee increases for hospitalization. Grains rose 3.4% and dining-out expenses advanced 3.34%.

Rising livestock prices and last year's electricity price hikes prevented a steeper fall in the PPI. Despite the slight increase in CPI, Chen remains optimistic that inflationary pressures will ease in the coming months.