Switzerland’s consumer prices rose more than expected in February, offering a modest sign of price pressure despite still subdued annual inflation. Data from the Federal Statistical Office showed CPI increased 0.6% mom, slightly above the expected 0.5% gain.
Core CPI, which excludes fresh and seasonal products as well as energy and fuel, rose by 0.2% mom on the month. The monthly increase was largely driven by higher domestic prices, which climbed 0.6%, while imported product prices rose 0.8%.
According to the FSO, the monthly increase was mainly driven by higher housing rents and air transport costs. Prices also rose for hotels and package holidays, while declines in items such as berries and fruit and vegetable juices partly offset the increase.
On an annual basis, headline inflation remained very subdued but slightly stronger than anticipated. CPI held steady at 0.1% yoy, slightly above expectations of a mild -0.1% yoy contraction. Core CPI edged down from 0.5%. Domestic prices accelerated modestly from 0.5% to 0.6%. Meanwhile, imported prices continued to decline, falling further from -1.5% to -1.6%.
