TAIPEI (TVBS News) — The Central Bank of the Republic of China (Taiwan) reported in 2024 that the country's core inflation cycle has shortened over the past three years, with prices rising by at least 1% every eight months on average. This is a critical factor in the public's heightened perception of inflation.
According to the central bank's analysis, the interval for a 1% price increase, calculated from 2013 to 2019, was approximately 17.19 months. However, from 2021 to 2023, this period was shortened to 7.98 months.
Statistics from the Executive Yuan's Directorate-General of Budget, Accounting and Statistics show that Taiwan's Consumer Price Index (CPI) has typically hovered around 1%. However, it reached 2.95% and 2.49% in 2022 and 2023, respectively. Due to electricity price adjustments, the CPI for 2024 is projected to hit 2.03%.
With Taiwan's inflation rate exceeding 2% for consecutive years, the frequent rise in prices for various meals and snacks has deepened the public's perception of inflation.
The central bank stated that since 2021, although the price adjustment range for most core items has not been high, the significant shortening of the adjustment cycle is a major factor influencing the public's perception of inflation. This has also resulted in a discrepancy between the public's perception of inflation and official statistical data.
The central bank's internal research report found that before 2020, Taiwan's inflation rate was relatively stable. However, since 2021, unexpected supply shocks due to the pandemic, geopolitical risks, and climate change have significantly altered Taiwan's inflation trend compared to before 2020.
