Switzerland: Inflation rises to near two-year high in May
June 7, 2021
Consumer prices rose 0.26% in May over the previous month, picking up from the 0.21% increase seen in April. The reading was driven by rising prices for housing and energy and transportation.
Inflation rose to 0.6% in May, following April’s 0.3%. May's reading represented the highest inflation rate since June 2019. Meanwhile, the trend pointed up slightly, with the annual average variation of consumer prices coming in at minus 0.5% in May (April: -0.7%).
Price pressures are expected to average higher this year than last, supported by a weaker franc, higher oil prices and stronger activity. However, inflation will be muted nonetheless, which will ensure the Swiss National Bank maintains its extremely expansionary monetary policy.
Author: Oliver Reynolds, Economist