Swiss Inflation Rate Slows to 0.7% in January

Swiss consumer price inflation eased to 0.7 percent year-on-year in January 2018 from the previous month's seven-year high of 0.8 percent. The figure came in slightly below market expectations of 0.8 percent, as cost of transportation rose at a softer pace while health prices fell sharply.

Transport inflation eased to 0.6 percent in January from 1.3 percent in the previous month. Meanwhile, upward pressure came from: housing and utilities (1.3 percent vs 0.9 percent in December); food and non-alcoholic beverages (1 percent vs 0.6 percent); recreation and culture (1.4 percent, the same as in December); and restaurants and hotels (0.6 percent, the same as in December). On the other hand, prices dropped sharply for both health (-0.9 percent vs -0.2 percent) and furnishings and household equipment (-2 percent vs -0.2 percent).

Annual core inflation, which strips out volatile price components like food, beverages, tobacco, seasonal products, energy and fuel, slowed to 0.5 percent in January from a near eight-and-a-half-year high of 0.7 percent in December. 

On a monthly basis, consumer prices edged down 0.1 percent in January, after showing no growth in December, due in particular to the decrease in prices for outpatient hospital medical services (-4.9 percent). Prices for air transport also declined (-7.2 percent), along with prices for clothing and footwear (-8.2 percent), in particular because of sales. In contrast, prices increased for overnight stays in hotels (9.9 percent), heating oil (6.6 percent) and electricity (2.9 percent).

Swiss Inflation Rate Slows to 0.7% in January

Swiss Federal Statistical Office | Joana Ferreira |
2/12/2018 8:39:59 AM