Swiss inflation rises less than expected in November

Swiss inflation rose slightly in November, although less than expected, remaining well below the Swiss National Bank’s target range, according to official data released on Tuesday.

Swiss annual inflation rose to 0.7% in November, from 0.6% the previous month, according to figures from the Federal Statistical Office. The consensus forecast in a Reuters poll of analysts was 0.8%.

Compared to the previous month, consumer prices fell by 0.1%, in line with Reuters forecasts.

The SNB, which targets an inflation rate of between 0 and 2%, will announce its next monetary policy decision next week.

So far in 2024, the SNB has cut its benchmark rate three times to 1%, and it expects more cuts to come.

Markets currently estimate a 72% chance of a 25 basis point cut and a 28% chance of a 50 basis point cut at the next SNB monetary policy meeting on December 12.