Rising prices: Inflation starts to rise again in April

Rising prices: Inflation starts to rise again in April
Rising prices: Inflation starts to rise again in April

Inflation experienced a new surge in April in Switzerland, after a pause in March. The prices of package holidays, air transport, furniture and gasoline have increased, while the prices of hotels and para-hotels have decreased.

In April, gasoline prices notably contributed to the rise in inflation (archives).


The increase in prices stood at 1.4% year-on-year in April, according to indications published Thursday by the Federal Statistical Office (FSO). Inflation had slowed to 1.0% in March. It increased by 1.2% in February, 1.3% in January and 1.7% in December.

On a monthly basis, prices increased by 0.3%, indicates the OFS in its press release.

Economists surveyed by the AWP agency expected lower inflation on an annual basis, their forecasts being between 1.0% and 1.2%. The monthly variation was expected between +0.1 and +0.2%.

The consumer price index (CPI) stood at 107.4 points in April. The underlying inflation barometer – adjusted for fresh and seasonal products, energy and fuels – reached 105.2 points, or +1.2% over one year or +0.4% compared to March.

More expensive indigenous products

The prices of indigenous products greatly supported inflation over one year, having jumped by 2.0% (+0.1% in monthly comparison). For imported products, prices fell by 0.4% over twelve months and increased by 1.1% month-on-month.

At the end of March, the Swiss National Bank (SNB) reduced its inflation forecasts for 2024, bringing them down to 1.4% from 1.9% previously. These prospects pushed the issuing institute to lower its key rate to 1.5%, against 1.75% previously, breaking with the monetary status quo observed since September 2023 and to the great surprise of the majority of observers.

The price slowdown is expected to continue into next year. The SNB also revised its estimates downward for 2025, forecasting inflation to 1.2%, compared to 1.6% in the previous reading. For 2026, a rate of 1.1% is expected by central bankers.

The rebound in inflation in April is largely attributable to food and fuel, volatile components of the CPI, notes economist Adrian Prettejohn of Capital Economics. The figures published Thursday reinforce the specialist’s conviction that the SNB will not carry out a further rate cut in June. Easing – by 50 basis points – is likely to come later in the year as underlying inflationary pressures remain low, Prettejohn predicts.




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