Switzerland: Inflation drops to lowest level since April 2021 in January
Latest reading: Inflation inched down to 0.4% in January, easing slightly from December’s 0.6% due to a faster fall in food prices. January’s result marked the lowest inflation rate since April 2021, and was in line with market expectations. The result was mild compared to neighbors—Euro area inflation clocked 2.5% in January—thanks to Switzerland’s ingrained low inflation expectations and comparatively limited wage growth.
Annual average inflation edged down to 1.0% in January (December: 1.1%). Meanwhile, core inflation ticked up to 0.9% in January from the previous month’s 0.7%.
Lastly, consumer prices fell 0.05% in January over the previous month, matching December’s reading. January’s uptick was the softest fall in prices since August 2024.