Switzerland: Inflation falls to lowest level since April 2022 in April
Inflation came in at 2.6% in April, down from March’s 2.9%. April’s result represented the lowest inflation rate since April 2022. The result was largely due to more moderate rises in prices for food, housing and transport. Inflation is especially muted compared to neighbors, with euro area inflation clocking 7.0% in April. This is due to Switzerland’s limited reliance on fossil fuels for electricity generation, ingrained low inflation expectations, the franc’s strength against the euro, and mild wage growth. That said, inflation remains above the Central Bank’s target of less than 2%.
Annual average inflation was unchanged at March’s 3.1% in April. Finally, consumer prices were stable in April over the previous month, coming in below March’s 0.15% rise. April’s result marked the weakest reading since December 2022.