Switzerland: Inflation drops to lowest level since July 2021 in September
Latest reading: Inflation ticked down to 0.8% in September, below August’s 1.1% and in line with the Central Bank’s target of below 2.0%. September’s result marked the weakest inflation rate since July 2021 and was less than half the level in the Euro area. The drop was primarily driven by falls in food and transport prices.
Annual average inflation fell to 1.3% in September (August: 1.4%). Meanwhile, core inflation edged down to 1.0% in September from the previous month’s 1.1%.
Finally, consumer prices fell 0.29% from the previous month in September, a sharper drop than the 0.01% drop recorded in August. September’s result marked the sharpest fall in prices since April 2020.
Outlook: Ongoing muted price pressures could encourage further rate cuts by the Central Bank at the next scheduled policy meeting in December, in order to ensure inflation does not fall too far below 2.0%.