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Inflation rate in Taiwan may rise above 2% this year: Central bank

by Focus Taiwan


Taipei, March 12 (CNA) Taiwan’s central bank said Wednesday that its inflation forecast for this year may be revised upwards to above 2 percent.

Predictions for Taiwan’s consumer price index (CPI) growth rate in 2025 by major Taiwanese and international financial institutions range from 1.70 percent to 2.30 percent, with an average of 1.95 percent, according to a report published by the Central Bank of the Republic of China (Taiwan) that day.

Factors including “international geopolitical conflicts,” weather, potential fare increases for Taiwan Railway Co., higher utility rates, and the impact of U.S. President Donald Trump’s new economic policies are “significant uncertainties” that could affect Taiwan’s inflation trends, the bank said.

The central bank predicted in December 2024 that Taiwan’s CPI growth rate would be 1.89 percent in 2025, and the rate has been above the “2 percent inflation warning threshold” for three consecutive years, the bank noted.

In addition to reporting that the inflation forecast may be adjusted upwards this year, the bank also said it spent US$16.42 billion in 2024 to stabilize the exchange rate — the highest amount since it began reporting such interventions in 2020.

The Taiwan dollar depreciated 6.24 percent against the U.S. dollar last year, the bank report said, which was a smaller depreciation than that experienced by the South Korean won and the Japanese yen.

Central bank officials are scheduled to present an oral report to the Legislature’s Finance Committee on Thursday.

(By Pan Tzu-yu and James Thompson)

Enditem/AW



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