Inflation in Switzerland remained stable in May and stood at 1.4% year-on-year, recording the same increase as the previous month. The national consumer price index (CPI) increased by 0.3% compared to April, standing at 107.7 points. This was announced today by the Federal Statistical Office (FSO).
This month-over-month increase is due to several factors, including the increase “of house rents and international flat-rate travel prices“, we read in a note. Rents, the expense that weighs the most on Swiss families’ wallets, increased by 3.4% on an annual basis, while food and drink costs remained practically unchanged (+0.2%). Petroleum products (+3.6%) also contributed to the acceleration of prices, while the cost of clothing and footwear decreased (-1.1%).
However, those of heating oil and imported red wine have decreased, as have those of the para-hotel sector, which groups together types of accommodation such as commercially exploited holiday homes, collective accommodation and campsites.
While all eyes are on the meeting of ECB on Thursday, economists do not rule out further monetary easing by the SNB, which will meet on June 20th. In mid-March the institution surprisingly lowered its reference rate to 1.5%, compared to the previous 1.75%.
There SNB forecasts an inflation rate of 1.4% in 2024 and 1.2% in 2025.
PHOTO: SHUTTERSTOCK
