The Swiss Federal Statistical Office reported an unanticipated decrease in consumer price inflation, marking the weakest point since September 2021. The figure for March illustrated a yearly augmentation of 1.0 percent, a slight decrease from February's 1.2 percent escalation. This data is the most modest since September of the previous year, when rates stood at 0.9 percent. Disproportionate to economists' predictions of a 1.3 percent hike.
The Consumer Price Index (CPI) remained consistent on a monthly basis. Core consumer rates observed a monthly increment of 0.1 percent in March and a yearly increase of 1.0 percent. Prices for housing and energy saw an escalade of 3.2 percent this year. However, the cost of food and non-alcoholic drinks fell by 0.4 percent, while clothing and footwear rates slipped by 0.1 percent.
Adrian Prettejohn, an economist at Capital Economics, remarked that the incessant decline in inflation substantiates the prediction that the central bank will implement additional rate reductions by 50 basis points within this year. He further speculated a growing probability of the Swiss National Bank (SNB) making a policy move in its upcoming gathering in June. Revisiting March, the SNB unexpectedly curbed policy rates by 25 basis points to 1.50 percent.
The SNB has estimated that consumer prices will experience an increase of 1.4 percent this year, followed by an upswing of 1.2 percent in 2025.
