Switzerland: Inflation moderates in June
July 8, 2014
In June, consumer prices fell 0.1% over the previous month, which contrasted both the 0.3% increase observed in May and market expectations of a 0.1% increase. June’s decrease was mainly driven by lower prices for clothing and footwear as well as by cheaper hotel and restaurants bookings.
As a result of the monthly drop, annual headline inflation fell from 0.2% in May to zero in June. May’s reading had represented the highest level in nearly three years. The inflation rate is still well below the Central Bank’s target of 2.0%. Annual average inflation remained unchanged at May’s zero rate in June.
The Central Bank expects inflation to average 0.1% in 2014. For 2015, the Bank expects inflation to rise to 0.3%. Panelists polled by FocusEconomics see inflation at 0.2% in 2014, which is unchanged from last month’s forecast. For 2015, panelists expect inflation to rise to 0.8%.
Author: Ricardo Aceves, Senior Economist