Data published by the Federal Statistical Office (FSO) showed that in July consumer prices rose by 1.3% per year after a similar increase in June. Economists also expected an increase of 1.3% per annum.
On a monthly basis, consumer prices fell 0.2% as expected after remaining unchanged in June. This was the first price reduction since November 2023. The FSO reported that the price drop is due to several factors including lower prices for international package holidays and for air transport. Prices also decreased for clothing and footwear due to seasonal sales. In contrast, supplementary accommodation and fruiting vegetables recorded a price increase, as did the hire of private means of transport.
Core inflation - excluding fresh and seasonal products, energy and fuel - fell by 0.3% on a monthly basis and rose by 1.1% per year.
The data also showed that in July, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in Switzerland with inflation in European countries - rose by 0.4% compared to June and by 1.2% per year.