FX.co ★ Taiwan Inflation Rate Eases in March

Taiwan’s annual inflation rate slowed to 1.2% in March 2026, down from a ten-month high of 1.75% in February. This deceleration came despite a sharp rise in global energy prices amid escalating tensions in the Middle East. The government contained the impact by using a price stabilization mechanism that absorbed nearly 75% of the increase in fuel costs, keeping domestic fuel prices below those of neighboring economies. Officials also affirmed that Taiwan’s energy supply is secure through May and indicated they are open to restarting decommissioned nuclear power plants to meet growing electricity demand. Price gains moderated for housing and utilities (2.02% vs. 2.06% in February), while food and non-alcoholic beverages saw a decline (-0.22% vs. a 0.21% increase previously). In contrast, transportation costs rebounded (0.03% vs. -0.86%). On a seasonally adjusted month-on-month basis, consumer prices rose 0.19% in March, unchanged from February. For the first quarter of the year, the CPI advanced by 1.23%.