Data published by the Federal Statistical Office (FSO) showed that in October consumer prices rose by 0.6% per year after an increase of 0.8% per year in September. Economists expected an increase of 0.8% per annum. The latest reading was the lowest since June 2021, when inflation rose by 0.6% per annum.
On a monthly basis, consumer prices fell 0.1%, slowing compared to September (-0.3%). Consensus estimates assumed that inflation would remain unchanged. The FSO reported that the decrease is due to several factors including lower prices for hotels and international package holidays. Prices also decreased for petrol, diesel and fruiting vegetables. In contrast, clothing and footwear recorded a price increase, as did housing maintenance and caretaking.
Core inflation - excluding fresh and seasonal products, energy and fuel – increased by 0.1% on a monthly basis and by 0.8% per year.
The data also showed that in October, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in Switzerland with inflation in European countries – remained unchanged compared to September and increased by 0.7% per year.