Switzerland: Inflation remains steady in July
Consumer prices dropped 0.04% from the previous month in July, swinging from the 0.50% rise recorded in June. July’s result marked the weakest reading since December 2021. The reading was primarily driven by more moderate rises in prices for housing and energy, transport and food, as well as lower clothing prices.
Inflation was stable at June’s 3.4% in July. July’s reading represented the joint-highest inflation rate since September 1993. Annual average inflation rose to 2.1% in July (June: 1.8%).
The month-on-month decline is a sign that price pressures are likely peaking, and our panelists expect inflation to decline over the coming quarters amid tighter monetary policy. Moreover, inflation will remain very mild in the broader European context, thanks to the country’s limited reliance on fossil fuels for electricity generation, ingrained low inflation expectations, the franc’s appreciation this year against the euro, and mild wage growth.