TAIPEI, July 9 — Taiwan’s consumer price index (CPI) dropped to 1.37% in June, marking the lowest inflation rate in over four years, government data revealed on Tuesday. Despite this overall decline, the cost of dining out and food continued to climb, contributing to a lingering perception of high living costs among the public.
This marks the third consecutive month that inflation has eased, according to statistics released by the Directorate General of Budget, Accounting and Statistics (DGBAS). When excluding volatile categories such as fruits, vegetables, and energy, the core inflation rate for June was slightly higher at 1.47%.
Food prices remained the primary driver of consumer cost increases, rising 2.82% year-on-year. This contributed significantly to the 3.44% increase in dining-out expenses, the report noted. The government acknowledged that while the overall inflation figure is low, persistent food-related price hikes continue to affect consumers’ perception of inflation.
Rental prices also saw a steady increase of 2.30% in June, adding to household expenses.
In May, inflation had already dropped below the 2% mark, and June’s figure now stands as the lowest in 51 months. Officials attributed the downward trend to a combination of factors, including stable domestic electricity rates, falling global raw material prices, and favorable exchange rate movements, which reduced the cost of imported goods.
Looking ahead, the government expects inflation to remain below 2% for the remainder of the year, assuming that external market conditions remain stable.
