Swiss inflation remained subdued in December, with headline CPI unchanged at 0.1% yoy, in line with expectations. Core inflation edged slightly higher, ticking up from 0.4% to 0.5%, pointing to mild underlying price pressures even as overall inflation stayed close to zero.
The divergence between domestic and imported prices remained a defining feature. Prices of domestic products rose from 0.4% to 0.5% yoy, while imported goods prices fell further into negative territory, slipping from -1.3% to -1.6% yoy.
On a monthly basis, headline and core CPI were flat mom, with domestic prices up 0.2% mom and imported prices down sharply by -0.8% mom. According to the State Secretariat for Economic Affairs, offsetting price movements kept the index stable. Lower prices for international package holidays, medicines and certain vegetables were balanced by higher costs for hotels, supplementary accommodation and private transport hire.
