Inflation Swiss inflation falls to 1.1 percent in August

Annual inflation in Switzerland fell in August. Compared to the previous month, however, prices remained stable.

Specifically, inflation fell to 1.1 percent in August from 1.3 percent in July, as reported by the Federal Statistical Office (FSO) on Tuesday. This means that Swiss consumer goods were on average 1.1 percent more expensive than in the same month last year.

Domestic goods are still relatively significantly more expensive than a year ago (+2.0%), while imported goods (-1.9%) are still clearly cheaper.

Since the beginning of the year, domestic inflation has fluctuated between 1.0% and 1.4%. Before that, it had risen to a high of 3.5% in August 2022. Compared to other countries, Switzerland is still in a better position, although the differences have recently narrowed considerably. In the eurozone, the last available figure (August) was 2.2%, in the USA (July) it was 2.9%.

Meanwhile, so-called core inflation in Switzerland did not move in August and remains at 1.1%. This excludes price changes for the food and energy segments, which are often very volatile. Central banks often focus more on this figure than on the general inflation figure when combating inflation.

Housing rents more expensive

Compared to the previous month of July, prices have remained unchanged on balance. The national consumer price index (CPI), which is used to calculate annual inflation, therefore remains at 107.5 points.

According to the FSO, prices for residential rents and for clothing and shoes have risen compared to July 2024. By contrast, prices for private transport rentals, air travel, heating oil and package tours abroad have fallen, as have those in the hotel and para-hotel industry.

SDA