Key facts
- Swiss annual inflation fell to 0.4% in July from 0.5% in June.
- Consumer prices decreased by 0.1% month-on-month in July.
- Lower costs for petroleum products, air transport, diesel, and petrol were key drivers.
- Seasonal discounts on clothing and footwear also contributed to the decrease.
- Core inflation held steady at 0.3% year-on-year.
Swiss annual inflation eased to 0.4% in July, a slight decrease from 0.5% in June, according to data from the Federal Statistical Office. This figure met analysts' expectations, with the decline largely attributed to falling petroleum product costs, including air transport, diesel, and petrol. Seasonal sales also contributed to lower prices for clothing and footwear.
Month-on-month, consumer prices dipped by 0.1%, consistent with consensus forecasts. While overall inflation softened, the cost of heating oil increased from the previous month. Year-on-year, petroleum product costs were up 13.6%, influenced by the conflict in the Middle East.
Core inflation remained stable at 0.3% year-on-year, indicating contained underlying price pressures. Imported product prices saw a significant monthly decrease of 1.1%, bringing annual imported inflation to 0.0%. Domestic product prices, however, remained steady both month-on-month and year-on-year.
The Swiss National Bank (SNB) recently maintained its benchmark interest rate, noting that its medium-term inflation outlook had seen minimal change despite recent price pressures. The SNB's target inflation rate is between 0% and 2%.