Switzerland: Consumer prices fall again in February in annual terms
Consumer prices rose 0.16% over the previous month in February, accelerating from the 0.06% increase recorded in January. February’s figure was the sharpest increase in prices since May 2019. The increase was largely due to rising prices for housing and energy, and higher clothing prices due to the end of the seasonal sales.
Consumer prices decreased 0.5% on an annual basis in February, matching January’s reading. The annual average variation of consumer prices remained at January’s minus 0.8% in February.
Inflation is expected to return later this year, supported by a weaker franc, higher oil prices and stronger activity. However, price pressures will be muted nonetheless, which will ensure the Swiss National Bank maintains its extremely expansionary monetary policy.