Switzerland: Inflation softens to a nearly one-and-a-half-year low in January

Consumer prices fell 0.3% over the prior month in January, matching the decrease registered in December. The decline in January was primarily due to a sharp drop in prices for clothing and footwear, due to winter sales; lower prices for household goods and housekeeping; and cheaper transport. This was partially offset by higher prices for restaurant and hotels, and alcoholic beverages and tobacco.

Inflation ticked down for the third consecutive month in January to 0.6% from 0.7% in December. Meanwhile, annual average inflation was stable at December’s 0.9% in January.

Switzerland Inflation Forecast

Panelists polled by FocusEconomics expect inflation to average 0.7% in 2019, which is down 0.2 percentage points from last month’s forecast. For 2020, panelists expect inflation to average 0.9%.