Taiwan's annual inflation rate eased to 1.2% in March 2026, slowing from a ten-month high of 1.75% recorded in the previous month. This slowdown occurred despite surging global energy prices, driven by escalating tensions in the Middle East. The Taiwanese government intervened by absorbing nearly 75% of the fuel price hike through a stabilization mechanism to keep domestic fuel costs lower than those of neighboring economies. Officials assured that Taiwan’s energy needs would be met through May and signaled openness to restarting decommissioned nuclear plants to address growing electricity demand. Prices moderated for housing and utilities (2.02% vs 2.06% in February), while it slipped for food and non-alcoholic beverages (-0.22% vs 0.21%). In contrast, costs rebounded for transport (0.03% vs -0.86%). On a seasonally adjusted monthly basis, consumer prices stood at 0.19% in March, unchanged from the previous month. For the first three months of the year, the CPI increased by 1.23%.