Swiss April Inflation Weaker than Expected

The Swiss consumer price inflation was unchanged at 0.8 percent year-on-year in April 2018, matching November's seven-year high, but missing market expectations of 0.9 percent. Cost of housing, transportation and food rose at a faster pace while restaurants & hotels inflation fell sharply and health deflation deepened.

Main upward pressure came from: housing and utilities (1.3 percent vs 1.2 percent in March); transport (2.4 percent vs 1.7 percent); food and non-alcoholic beverages (1.4 percent vs 0.9 percent); recreation and culture (2.7 percent vs 2.4 percent); and miscellaneous goods and services (0.6 percent vs 0.4 percent). On the other hand, restaurants and hotels inflation fell to a flat reading (vs 0.8 percent in March) while prices dropped sharply for both health (-1.5 percent vs -1.4 percent) and furnishings and household equipment (-1.6 percent vs -0.5 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 April from 0.6 percent in March. 

On a monthly basis, consumer prices rose 0.2 percent in April, following a 0.4 percent gain in March and also missing market consensus of 0.3 percent. The increase was led by higher prices of petroleum products (3 percent), international flat-rate travel (3.4 percent) and air transport (4.3 percent). By contrast, prices fell for overnight stays at the hotel (-7.1 percent), vegetables (-6.6 percent) and berries (-14.3 percent).

Swiss April Inflation Weaker than Expected

Swiss Federal Statistical Office | Joana Ferreira |
5/7/2018 7:39:21 AM