Taiwan Inflation Rate Lowest in 5 Years

The annual inflation rate in Taiwan slowed to 0.69% in January 2026, sharply down from 1.31% in December, marking the lowest level since January 2021. This was also the ninth consecutive month below the central bank’s 2% target. Downward pressures came from continued deflation in transportation and communication (-1.95% vs -1.34% in December) and declines in education and entertainment costs (-0.97% vs 1.69%). Inflation also moderated for food (1.16% vs 1.26%), housing (1.82% vs 1.86%), and miscellaneous goods (1.99% vs 3.26%). On the other hand, price growth accelerated for clothing (1.58% vs 0.90%) and health (1.62% vs 1.53%). On a seasonally adjusted monthly basis, consumer prices rose 0.10%, following a 0.14% gain in the previous month.