Data for the month of February shows inflation is back to its 2021 level, at 1.2%, compared with the same time last year, putting Switzerland on the same path as its European neighbours.
ADVERTISEMENTThe small European country (8.8 million inhabitants) has been on this path for a few months now, with inflation generally slowing over the last year. February registered a slow deceleration compared with January's 1.3% rate.
The Swiss Federal Statistical Office (FSO) said on Monday that prices continued to be on the rise in several categories, including air transport and housing rentals. On the other hand, common food items are getting cheaper, as well as beauty products.
Switzerland's economy has remained overall healthier than the one of its EU neighbours, which have been hit harder by the economic and financial downfall of the war in Ukraine.
Although Swiss inflation rose to 3.5% in August 2022, its highest level in almost 30 years, it does not quite compare to the EU's 11.5% peak at the end of the same year.
Switzerland's encouraging results for February puts the country in its target rate below 2% - meaning the Swiss National Bank (SNB) could choose to lower its interest rates in the coming weeks.
Swiss interest rates currently stand at 1.75%, and have been left unchanged since June 2023.
Market expectations of rate cuts by the central bank have persisted, encouraged by recent comments by an SNB economist praising the return of price stability.
