Taiwan Watch: June inflation picked up amid sticky services and energy prices

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Taiwan Watch: June inflation picked up amid sticky services and energy prices

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Taiwan Watch

June inflation picked up amid sticky

services and energy prices

Inflation surprised to the upside in June 07 July 2026

Taiwan’s CPI inflation rose to 2.6% yoy in June, above consensus of 2.3% and up from GEM Economics

2.2% in May. On a sequential basis, CPI increased 0.52% mom, or 0.21% mom after Asia | Taiwan

seasonal adjustment. The pickup brought 1H26 average CPI inflation to 1.70% yoy. Core Anna Zhou

CPI inflation rose to 2.45% yoy in June, also above expectations. China & Asia Economist

Merrill Lynch (Hong Kong)

Sticky services and energy prices keep inflation firm +852anna.zhou@bofa.com3508 3909

By composition, both goods and services inflation remained firm. Goods inflation picked Helen Qiao

up to 2.32% yoy, while services inflation increased to 2.85% yoy. Services pressure was ChinaMerrill&LynchAsia Economist(Hong Kong)

broad-based, led by recreation services at 5.08% yoy and dining-out costs at 3.02% yoy. +852 3508 3961

helen.qiao@bofa.com

The June CPI upside reflected several overlapping drivers. Sequentially, housing was the

largest contributor, rising 1.30% mom, as the start of summer electricity rates pushed

electricity prices up 22.21% mom. On a yoy basis, energy and transport-related costs

remained important: fuel prices were still elevated despite easing in absolute levels

toward late June, while fuel surcharges continued to lift international airfares.

In addition, the Dragon Boat Festival timing mismatch boosted some service prices, as

the holiday fell in June this year versus May last year. Imported inflation pressure also

remained significant, with import prices up 15.4% yoy in USD terms and continued TWD