TAIPEI (Taiwan News) — A March survey by Cathay Financial Holdings found that 51% of respondents expect inflation to exceed 2% this year.

Meanwhile, 15% predict inflation will surpass 3%, while 32% believe inflation will range between 1% and 2%, per CNA.

More than 30% attributed future price increases to rising consumer goods costs. Meanwhile, 21.4% cited overall economic conditions, and 16.4% pointed to adjustments in public utility fees, such as electricity, gas, and national health insurance premiums.

The survey was conducted from March 1-7, targeting Cathay Life Insurance members and Cathay United Bank customers via email. A total of 14,517 valid responses were collected.

Cathay noted that in March, uncertainty surrounding US President Donald Trump’s policies and global trade tensions led to cautious investor sentiment, resulting in volatile and weaker international stock markets. The survey showed declines in consumer confidence, stock market optimism, and risk appetite indices compared to the previous month.

As the country's era of low inflation ends, a 2% inflation rate could become the new normal, National Central University Department of Economics Professor Wu Ta-jen (吳大任) said. Taiwan's average inflation over the last 10 years was 1.2%, per UDN Money.

The survey also revealed that Taiwan's economic growth rate is expected to average 2.77% in 2025, down from 2.84% in February’s survey. Also, 56% of respondents believe GDP growth will fall below 3% this year, while 33% estimate it will be between 3% and 4%.

Taiwan's GDP growth rate last year was 4.3%. On March 13, Standard Chartered Bank revised its 2025 and 2026 GDP growth forecasts for Taiwan, raising them from 2.3% to 3.0% and from 2.0% to 2.5%, respectively.