Inflation has calmed down in 2024. It has returned to 1.1% on an annual average (compared to 2.1% in 2023), the Federal Statistical Office (FSO) announced on Tuesday, a drop in line with forecasts. of the central bank and the Federal Department of Economic Affairs.
This slowdown is attributable to a drop in imported products which decreased by 1.5% compared to the previous year while Swiss products increased by 1.9% on annual average, driven upwards in particular by the increase rents, indicates the OFS in a press release.
In December alone, inflation in Switzerland decelerated further, to 0.6% over one year, compared to 0.7% in November, under the effect of a decline in the prices of petroleum products and transport as well as as household equipment.
In monthly variation, prices decreased by 0.1% compared to the month of November due to a drop in the prices of international travel packages, medicines and various vegetables, detailed the OFS. On the other hand, prices in the hotel and para-hotel industry have increased.
A less tense situation than in the euro zone
Switzerland did not escape the wave of inflation which suddenly accelerated in the months following the invasion of Ukraine. But it had started from a low level and inflation had not reached the same proportions as in the euro zone. In 2022, it peaked at 3.5% over one year in August, then began to decline in fits and starts, amounting to 2.8% for the whole year.
From June 2023, it fell back below the 2% mark targeted by the central bank and continued to decline in 2024. Last year, it returned to 1% in March but then recovered in April and May. before falling again to fall below the 1% threshold in September.
The Swiss National Bank was therefore able to start easing its monetary policy before the European Central Bank and the American Federal Reserve, starting with a rate cut of 0.25 points in March 2024, followed by other reductions of the same magnitude in June and September, then by a cut of 0.50 points in December. Both the SNB and the Ministry of the Economy expected inflation of 1.1% in 2024 on average annually. For 2025, their forecasts are similar, at 0.3%.
