Taipei: Taiwan's consumer price index (CPI) experienced a year-on-year increase of 1.74 percent in April, partly due to rising energy prices prompted by tensions in the Middle East, as reported by the Directorate-General of Budget, Accounting and Statistics (DGBAS) on Thursday.

According to Focus Taiwan, international oil prices surpassed US$100 per barrel following an attack by the U.S and Israel on Iran in late February, raising concerns about inflation. DGBAS Senior Executive Officer Tsao Chih-hung indicated that government measures aimed at stabilizing prices helped mitigate inflation in April, despite the global surge in energy costs.

Fuel prices saw an increase in April after a decline in March, with a year-on-year rise of 13.6 percent, marking the largest spike in four years since the onset of the Russia-Ukraine war. Tsao noted that costs associated with dining-out and rents also remained high, contributing to the CPI increase for April.

The Middle East conflict led to a swift impact on energy prices, which was evident in the import price changes, Tsao explained. Import prices in terms of the New Taiwan dollar rose by 9.22 percent in April, registering the highest increase in three-and-a-half years. Similarly, the producer price index (PPI) climbed by 8.54 percent, reaching its peak level in the same period.

Core CPI, which excludes volatile items such as fruit, vegetables, and energy, rose by 1.91 percent from the previous year, staying below the 2 percent inflation alert threshold set by the central bank. Despite expectations of higher airfares potentially pushing up the CPI in May, Tsao expressed confidence that the increase would likely remain under 2 percent.

Recent reports of a potential agreement between the U.S. and Iran have led to a decrease in international oil prices, which Tsao described as a favorable development. He emphasized that ongoing developments remain under close observation.