Inflation in Switzerland fell to its lowest level in over two years in January.
The inflation rate fell to 1.3 percent from 1.7 percent in December, the Federal Statistical Office (BFS) announced on Tuesday. Inflation has not been this low since October 2021. Analysts were surprised by the development. On average, they had expected the inflation rate to remain unchanged.
In December, inflation accelerated from 1.4 to 1.7 percent. Before that, inflation had fallen from over 3 percent for months, although in June 2023 it fell below the 2 percent mark for the first time since January 2022.
Core inflation, which excludes, among other things, volatile energy and fuel prices, also fell in January. It fell to 1.2 percent, from 1.5 percent previously.
The National Bank is targeting inflation of a maximum of 2 percent. The current value is therefore clearly below this upper limit. In January, prices for electricity and the hotel industry, among other things, rose, as the statement shows. Prices for motor vehicle insurance and meals in restaurants and cafes have also risen. Air transport prices, however, have fallen, as have those for clothing and shoes.
As always in January, the basket weighting for the national consumer price index is adjusted. The Federal Statistical Office (BFS) is thus taking into account the changing consumption habits of private households. However, there will only be selective shifts in 2024, after some of them were significant during and after the pandemic, according to the statement. (dpa)