Switzerland: Inflation at joint-lowest level since December 2021 in August
Inflation held steady at July’s 1.6% in August, marginally above market expectations but in line with the Central Bank’s target of below-2% inflation. August’s result represented the joint-weakest inflation rate since December 2021. Lower price pressures for food were offset by a smaller fall in transport prices. Inflation remains muted compared to neighbors, with euro area inflation clocking 5.3% in August. This is due to Switzerland’s ingrained low inflation expectations, the franc’s strength against the euro, and mild wage growth.
The trend pointed down mildly, with annual average inflation coming in at 2.6% in August (July: 2.8%). Finally, consumer prices increased 0.21% in August over the previous month, swinging from the 0.14% drop logged in July.