Consumer prices in Switzerland remained stable in April over a year. It is essentially the prices of imported products, through oil, which have displayed a significant decline.
In April, inflation was zero as much over a year as over a month, according to data published Monday by the Federal Statistical Office (OFS). This level is lower than the forecasts of the economists questioned by the AWP agency, which had anticipated the acceleration of consumer prices between 0.1% and 0.3% over a year and a month.
Consumer prices have started a decline since the start of the year. Acquuring 0.4% over one year in January, they slowed 0.3% in February and March.
During the month under review, rents, one of the main spending posts for Swiss households, accelerated by 3.2%, while food and drinks prices contracted by 0.8%and health costs by 0.3%. Note that the price of chocolate flew by 13%, due to the high rise in cocoa bean prices.
Petroleum products, on the other hand, displayed a fall of 8.6%, causing with them the petrol (-7.8%) and air transport (-9.5%) prices.
Rents are “the main engine of the price increase among services,” said Arthur Jurus. According to the director of investments at Oddo BHF Swiss bank, “inflation would even have been negative” by 0.7% over a year outside rents. The continuation of the depreciation of the dollar could lead to inflation closer to -1% in early 2026, according to the expert.
Faced with the prospect of negative inflation, the Swiss National Bank (BNS) should lower its key rate to 0% in June, against 0.25% currently, estimated Mr. Jurus, according to which the Swiss central bank “could accentuate its communication to avoid a slippage of inflation anticipations”, in particular by evoking the possibility of introducing negative rates again.
The emission institute aims indeed a consumer price index in a range between 0% and 2% that it equates with price stability.
This article was published automatically. Sources: ATS / AWP
