Taiwan's annual inflation rate jumped to 2.2% in May 2026 from 1.74% in the previous month. It marked the highest reading since March 2025 and the first time in a year that inflation has topped the 2% mark, as elevated freight and energy costs resulting from the Middle East conflict intensified inflationary pressures in the energy-dependent economy despite fuel and electricity subsidies. Price pressures intensified for food (1.36% vs 0.58% in April), transport and communication (4.00% vs 2.66%), clothing (1.01% vs 0.81%), and education and entertainment (3.03% vs 2.44%). Meanwhile, housing inflation was unchanged at 2.06%, while price growth eased for health (0.70% vs 1.03%) and miscellaneous goods and services (2.44% vs 2.48%). On a seasonally adjusted monthly basis, consumer prices slowed to 0.19% from a downwardly revised 0.46% in April. Considering the first five months of the year, consumer prices increased 1.52% compared to the same period a year earlier.