SNB Can Finally Breathe—Swiss Inflation Starts to Tick Up
Swiss inflation edged higher for the first time since July, easing market concerns that the Swiss National Bank (SNB) could be pushed back toward negative interest rates. The latest figures show consumer prices are starting to rise again, although overall inflation remains very low.
Switzerland’s statistical office reported annual inflation (CPI) increased 0.1% in December, up from flat growth in November. The print keeps fourth-quarter inflation aligned with the SNB’s low projections and supports the view that price pressures haven’t fully disappeared.
The uptick was driven by higher costs for rent, education, and tobacco products. Core inflation also rose, signaling a modest strengthening in underlying price pressures even as headline CPI stays subdued.
Looking ahead, inflation may remain soft in January. Lower nationwide electricity rates at the start of the year are expected to weigh on CPI, while companies are also signaling that wage growth could slow. This keeps the SNB’s policy outlook highly sensitive to upcoming activity data.
FX (latest): USD/CHF ~0.797 and EUR/CHF ~0.931, showing the franc remains strong versus the dollar and euro—typically a factor that helps limit imported inflation in Switzerland.
Source: Newsmaker.id
