Taiwan Inflation Cools to 4-Year Low in May

The annual inflation rate in Taiwan eased to 1.55% in May 2025 from 2.03% in the previous month, marking the lowest level since March 2021.

The slowdown was mainly driven by slower price increases for food (3.1% vs 4.3% in April), housing (1.8% vs 1.9%), miscellaneous goods and services (2.4% vs 2.9%), as well as steeper price declines for transportation and communication (-1.6% vs -0.7%) and clothing (-0.6% vs -0.1%).

In contrast, inflation picked up for education and entertainment (1.2% vs 0.7%).

On a seasonally adjusted monthly basis, consumer prices fell 0.14%, the first decline since November 2023, reversing a downwardly revised 0.04% gain in April.