Switzerland: Inflation moderates in March
Inflation came in at 2.9% in March, which was down from February’s 3.4% and undershot market expectations. The reading was largely driven by a slower rise in prices for housing and energy. Moreover, prices for food and non-alcoholic beverages grew at a more subdued pace.
Inflation remains mild in the broader European context, with euro area inflation clocking 6.9% in March. 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%.
The trend was unchanged, with annual average inflation coming in at February’s 3.1% in March. Lastly, consumer prices rose 0.15% in March over the previous month, coming in below the 0.75% increase recorded in February.