In September 2022, Switzerland’s consumer price index (CPI) fell by 0.2% compared with the previous month, according to data from Switzerland’s Federal Statistical Office (FSO).
The 0.2% month-on-month fall was due to falling prices for fuels, heating oil, hotels and related accommodation. Falls in the prices of these items were offset by higher clothing and footwear prices.
Monthly deflation left the year-on-year inflation rate at 3.3% compared to a peak of 3.5% in August 2022.
Since the end of December 2020, prices have risen by 4.6%, an annualised rate of 2.6%, not far above the central bank’s target rate of inflation of 2%. Over the 5 years from September 2017 Switzerland’s annual inflation has averaged 0.9%, well below the target rate.
To head off the recent rise in inflation the Swiss National Bank has hiked interest rates twice. In June 2022 it moved its policy rate from -0.75% to -0.25%. In September 2022, the SNB raised its policy rate by a further 50 basis points from -0.25% to +0.25%, moving rates from negative territory for the first time since 2011.