Swiss inflation remained subdued in June, with consumer prices unchanged on the month and annual headline inflation easing from 0.6% yoy to 0.5% yoy, in line with market expectations. Core inflation, which excludes fresh and seasonal products as well as energy and fuel, was also flat on the month and held steady at 0.3% yoy, pointing to persistently muted underlying price pressures.
The breakdown highlighted a divergence between domestic and imported inflation. Prices for domestic products rose 0.1% mom and slowed from 0.6% yoy to 0.5% yoy. Imported product prices fell -0.4% mom. On an annual basis, imported inflation decelerated sharply from 0.7% yoy to 0.2% yoy, reflecting the impact of lower global energy prices and easing imported cost pressures.
The latest figures reinforce Switzerland’s position as one of the lowest-inflation economies among advanced markets. With both headline and core inflation remaining well below levels seen elsewhere in Europe, the data should give the Swiss National Bank flexibility to keep policy unchanged while monitoring external developments, particularly the effects of lower commodity prices and exchange-rate movements on imported inflation.
| Indicator | Previous | Latest | Consensus |
|---|---|---|---|
| Headline CPI (MoM) | — | 0.0% | 0.1% |
| Core CPI (MoM) | — | 0.0% | — |
| Domestic Product Prices (MoM) | — | 0.1% | — |
| Imported Product Prices (MoM) | — | -0.4% | — |
| Headline CPI (YoY) | 0.6% | 0.5% | 0.5% |
| Core CPI (YoY) | 0.3% | 0.3% | — |
| Domestic Product Prices (YoY) | 0.6% | 0.5% | — |
| Imported Product Prices (YoY) | 0.7% | 0.2% | — |
