Swiss inflation fell to 1.1%: What does this mean for the economy?

In August 2023, the inflation rate in Switzerland fell to 1.1 percent, after being at 1.3 percent in July. This was announced on Tuesday by the Federal Statistical Office (FSO). Compared to the previous month, prices remained stable, indicating a certain easing in price trends. Since the beginning of the year, inflation in Switzerland has fluctuated between 1.0 and 1.4 percent, after reaching a peak of 3.5 percent in August 2022. Compared to the eurozone, where the inflation rate was 2.2 percent in August, Switzerland is showing comparatively lower inflation, even if the difference has recently narrowed.

Core inflation, which excludes volatile food and energy prices, remained unchanged at 1.1 percent in August. This indicator is often crucial for central banks as it provides a more stable picture of price developments. Month-on-month, prices for housing rents and clothing and shoes rose, while the costs of private transport, air travel, heating oil and package holidays abroad fell.