Taiwan Central Bank Raises 2026 Inflation Projection to 1.93%

Taiwan's central bank raised its 2026 consumer price index (CPI) growth forecast to 1.93% from 1.91%, and hiked its core CPI forecast to 1.92% from 1.90%, after second-quarter inflation came in above expectations, Focus Taiwan reported Thursday. Citing a report submitted to lawmakers ahead of a legislative hearing, the news outlet said second-quarter CPI rose 2.17% from a year earlier, exceeding its 2.10% forecast. Meanwhile, core CPI, which excludes fruit, vegetables and energy, increased 2.15%, above its previous estimate of 2.06%. June CPI accelerated to 2.60% from 2.20% in May, driven by higher fuel prices linked to Middle East tensions and weather-related increases in vegetable prices. The central bank said government price stabilization measures kept first-half inflation at 1.7%, below its 2% alert threshold, and expects price pressures to remain contained in the second half as easing crude oil prices lower fuel and transport costs. Taiwan's statistics agency has warned July inflation could temporarily exceed 2% due to Typhoon Bavi's impact on fruit and vegetable prices but still forecasts full-year CPI growth of 1.93%, the report said. (Market Chatter news is derived.