Swiss inflation remained subdued in May, underscoring the country’s unique position at a time when many major economies are grappling with renewed price pressures. Headline CPI held steady at 0.6% yoy, missing expectations for an increase to 0.8% yoy. Core inflation was also unchanged at 0.6% yoy, suggesting underlying price pressures remain remarkably contained despite rising energy costs and inflation concerns elsewhere in the global economy.
The monthly figures painted a similar picture. CPI rose 0.2% mom, below expectations of 0.3% mom, while core prices increased just 0.1% mom.
Domestic product prices showed some modest firming, rising 0.6% yoy from 0.5% yoy previously, while imported product inflation eased from 0.9% yoy to 0.7% yoy. On a monthly basis, imported prices actually fell by -0.1%, a sharp contrast to April’s 1.5% increase.
The data reinforce the Swiss National Bank’s view that price stability remains intact. Switzerland continues to enjoy one of the lowest inflation rates in the developed world. With headline and core inflation both anchored at 0.6%, markets are likely to maintain expectations that the SNB will keep its policy rate unchanged at 0% for the remainder of the year.
| Indicator | April | May | Expectation |
|---|---|---|---|
| CPI Y/Y | 0.6% | 0.6% | 0.8% |
| Core CPI Y/Y | 0.6% | 0.6% | — |
| CPI M/M | 0.3% | 0.2% | 0.3% |
| Core CPI M/M | 0.0% | 0.1% | — |
| Component | April | May |
|---|---|---|
| Domestic Product Prices M/M | -0.1% | 0.2% |
| Domestic Product Price Y/Y | 0.5% | 0.6% |
| Imported Product Prices M/M | 1.5% | -0.1% |
| Imported Product Prices Y/Y | 0.9% | 0.7% |
