TAIPEI, May 26 (Xinhua) -- Taiwan's statistics authority said Saturday that the island's economy is expected to grow by 2.6 percent in 2018, 0.18 percentage points higher than the previous forecast released in February.

The adjustment was made based on strong economic performance in the first quarter, which saw a 3.02-percent increase based on a preliminary estimate, said the authority.

The annual Consumer Price Index (CPI) forecast was raised to 1.49 percent, up 0.28 percentage points, mainly reflecting escalating oil prices.

It also revised the 2017 economic growth rate to 2.89 percent from the previous report of 2.86 percent.