May 5, 2025|
AI
|7 months agoSwiss Inflation Hits Zero as Strong Franc Dampens Import Costs
April inflation rate drops to lowest level in four years, driven by strong franc and declining costs of imported goods, while core inflation slows to 0.6%.
AI
Generated IllustrationKey Takeaways
AI
- Swiss annual consumer-price growth hit exactly 0% in April 2025.
- The Swiss Franc appreciated against all major peer currencies in April.
- Swiss manufacturing activity recorded its largest drop in four years.
- The Swiss National Bank (SNB) has already cut the benchmark rate by 150 basis points.
- Residential rents remain the only major source of structural consumer-price growth.
By The Numbers
0%
Annual Inflation Rate (April)
0.6%
Core Inflation Rate
2.2%
Euro Area Inflation
0.25%
Current SNB Policy Rate
They Said
"Against this backdrop, we expect the SNB to lower its policy rate to 0% at its June meeting."
"The SNB shouldnât panic about 0% inflation. We have been there before and we will get out of there as well."