Switzerland: Inflation rises in June to near two-decade high
Consumer prices increased 0.50% in June over the previous month, which was below the 0.65% rise logged in May. This was largely driven by slower growth in prices for food, housing and energy. In contrast, transport price growth quickened.
Inflation came in at 3.4% in June, up from May’s 2.9%. June’s figure was the highest inflation rate since September 1993. Annual average inflation edged up to 1.8% in June (May: 1.6%).
Over the coming quarters, higher commodity prices due to the war in Ukraine will keep inflation relatively elevated by recent Swiss standards at over 2%. However, upward pressures should be somewhat muffled by the country’s limited reliance on fossil fuels for electricity generation, ingrained low inflation expectations and mild wage growth. As such, inflation will stay very mild in the broader European context.