Taiwan August Headline Inflation Drops to 2.0 on Falling Food and Energy Prices

Economics Research 8 September 2026 | 11:49PM KST

Taiwan: August Headline Inflation Drops to 2.0% on Falling Food and Energy Prices

Bottom line: Irene Choi | Goldman Sachs (Asia) L.L.C., Seoul Taiwan’s headline CPI inflation dropped to 2.0% yoy in August from 2.5% the prior Branch

month. The figure was lower than our below-consensus forecast. Headline sequential Goohoon Kwon, CFA | momentum dropped to -0.1% mom sa (seasonally adjusted by GS) from +0.3% in the Goldman Sachs (Asia) L.L.C. previous three months, marking the first sequential decline since September last year. Goods prices fell by 0.2% on the back of declining food and oil prices, whereas service costs rose modestly by 0.1%. Core CPI edged down to 2.3% yoy from 2.4% in the prior month, as its sequential momentum remained broadly unchanged at 0.2% mom sa.

August headline CPI: +2.0% yoy vs. Bloomberg consensus: +2.4% yoy; GS forecast: +2.2% yoy; Previous: +2.5% yoy.

August core CPI: +2.3% yoy; Previous: +2.4% yoy.

1. Taiwan’s headline CPI inflation dropped to 2.0% yoy in August from 2.5% the prior month. The figure was lower than our below-consensus forecast of 2.2% (vs. Bloomberg consensus of 2.4%). 2. Headline sequential momentum dropped to -0.1% mom sa (seasonally adjusted by GS) from +0.3% in the previous three months, marking the first sequential decline since September last year. Goods prices fell by 0.2% as food inflation dropped to -0.6% mom sa, representing the sharpest decline since February. Oil prices also fell by 0.8%, with the pace of decline moderating from -6.1% in the prior month. In contrast, prices of semidurable and durable goods rose at an accelerated pace of 0.3% and 0.5%, respectively. 3. Service prices rose by 0.1% mom sa, with the momentum slowing slightly from 0.2% last month. Transportation service costs dropped by 0.6%, whereas entertainment service costs moderated to a 0.1% increase. Inflation for other service components remained broadly stable. 4. Core CPI (excluding fruit, vegetables, and energy) momentum remained broadly unchanged at 0.2% mom sa. Year-on-year core inflation edged down to 2.3% from 2.4% in the prior month, remaining a touch below the Bloomberg consensus of 2.5%.

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Exhibit 1: A drop in August Inflation

Percent change, yoy Percent change, yoy 6 6

4 Headline 4 Goods 3 Services 3