National Central University's Research Center for Taiwan Economic Development (RCTED) released the February Consumer Confidence Index (CCI) on Thursday, showing a slight uptick despite economic uncertainties. Analysts suggest that while electricity prices are set to rise, U.S. tariff measures could weaken global demand, leading to lower costs for imported raw materials and fuel. As a result, inflation may still stay below 2% this year.
The February CCI reached 72.59 points, rising 0.05 points from the previous month and ending a four-month decline. Of the six sub-indices, four improved: domestic economic outlook, purchases of durable goods, employment opportunities, and household income. The domestic economic outlook showed the largest gain, climbing 0.57 points. Meanwhile, stock investment sentiment and price expectations fell, with the latter hitting an eight-month low.
RCTED CEO Dachrahn Wu (吳大任) noted that the overall index has stabilized after previous declines. The potential impact of the Trump administration's tariffs could drive down raw material and fuel costs, offsetting the inflationary effects of domestic electricity price hikes. Wu added that if typhoon activity does not severely disrupt Taiwan’s agricultural sector in the second half of the year, the Consumer Price Index (CPI) growth rate is likely to remain below the 2% inflation warning threshold.