FX.co ★ Taiwan Inflation Nears 1-Year High, Trade Surplus Grows

Taiwan's consumer price inflation surged to its highest point in nearly a year this January, according to data released by the Directorate General of Budget, Accounting, and Statistics on Friday.

Additionally, separate official reports indicated a notable increase in Taiwan's trade surplus at the year's start, driven by a rise in exports following an unexpected decline in imports.

The consumer price index (CPI) experienced a year-on-year increase of 2.66 percent in January, surpassing December's 2.11 percent rise. This marks the highest inflation since February 2024, when prices increased by 3.08 percent.

January's overall price escalation is primarily attributed to the Lunar New Year holidays occurring earlier in 2025 compared to 2024. Consequently, prices for holiday groceries and certain services surged just before or during the Lunar New Year festivities, the agency reported.

The inflation uptick was significantly influenced by a 0.53 percent rebound in transportation and communication costs.

Miscellaneous goods saw a price increase of 4.16 percent compared to last year, while food prices rose more modestly at 3.72 percent.

On a monthly basis, consumer prices, adjusted for seasonal factors, rose by 0.25 percent in January, following a 0.15 percent increase in the previous month.

Data also revealed that producer price inflation climbed to 3.87 percent in January from 3.07 percent in December.

Taiwan's trade surplus expanded to $9.97 billion in January, up from $2.39 billion in the same month the previous year, according to preliminary figures from the Ministry of Finance.

Exports grew by 4.4 percent year-over-year in January, down from a 9.2 percent increase in December. Economists had anticipated a 3.5 percent growth. Notably, shipments of information, communication, and audio-video products surged by 32.6 percent, while those of base metals and related materials fell by 14.6 percent.

Imports, on the other hand, dropped 17.2 percent annually, following a substantial 30.2 percent rise in December. Expectations had been for a 0.7 percent increase.