FX.co ★ Taiwan Inflation Hits 17-Month High

Taiwan’s annual inflation rate climbed to 2.6% in June 2026, up from 2.2% in May. This was the second straight month that inflation exceeded the central bank’s 2% target and the highest rate since January 2025. The increase was driven in part by higher fuel prices, linked to disruptions in the Strait of Hormuz following the conflict involving Iran. In the latest development, US and Iranian officials announced that they had reached a framework agreement to end hostilities, lift the US blockade of Iran, and reopen this critical shipping route.

Price gains strengthened across all major categories: food inflation rose to 1.78% (from 1.36% in May), housing to 2.20% (from 2.06%), transportation and communication to 4.14% (from 4%), clothing to 1.67% (from 1.01%), healthcare to 0.97% (from 0.70%), education and entertainment to 3.60% (from 3.03%), and miscellaneous goods and services to 3.30% (from 2.44%). On a seasonally adjusted monthly basis, consumer prices increased 0.21% in June, down from 0.26% in May, marking the slowest monthly rise since February.