FX.co ★ Switzerland Consumer Prices Fall for 1st Time Since 2021

In May 2025, Switzerland experienced a slight deflation in consumer prices, which decreased by 0.1% compared to the same month the previous year. This shift followed a period of price stability in April and aligned with market predictions. It marks the first occurrence of deflation since March 2021. Key contributors to this trend include a significant drop in transport costs, which fell by 3.7% compared to a 2.6% decline in April. Additionally, there were continued reductions in the prices of food and non-alcoholic beverages and healthcare, which registered falls of 0.3% and 0.2%, respectively. Other sectors also saw price decreases, including household goods and services (-2.6% vs. -2.2%), clothing (-0.3% vs. -0.2%), and recreation and culture (-0.1% vs. -0.7%). Conversely, there was a more modest increase in the costs of housing and energy (1.1% vs. 1.4%), as well as restaurants and hotels (1.3% vs. 1.6%). Communication prices remained stable with a 1.0% increase. Core inflation, which excludes the more volatile categories such as unprocessed food and energy, fell slightly to 0.5% from 0.6% in April. On a month-to-month basis, the consumer price index saw a slight rise of 0.1%, after two months of no change, consistent with market expectations.