Swiss inflation remained subdued in March, with CPI rising 0.2% mom, below expectations of 0.5% mom. Annual inflation edged up from 0.1% yoy to 0.3% yoy, also missing forecasts of 0.5% yoy. The data highlights a continued lack of underlying price pressure despite some pickup in energy-related components.
The breakdown shows a clear divergence. Imported product prices rose sharply by 1.8% mom, driven by higher costs for heating oil and fuel. However, domestic product prices fell -0.2% mom, and core CPI was flat at 0.0% mom, signaling that internal inflation dynamics remain weak.
On a yearly basis, core CPI held steady at 0.4% yoy, while domestic price growth eased slightly from 0.6% yoy to 0.5% yoy. Import prices, although still negative at -0.3% yoy, rose significantly from -1.6% yoy, reflecting external cost pressures.
Overall, the data suggests that inflation in Switzerland is being driven by imported factors rather than domestic demand, keeping underlying price trends contained.
