Swiss Inflation Turns Negative for First Time in Four Years
- Switzerland's consumer price index fell 0.1% year-over-year in May 2025, marking the first negative inflation rate since early 2021.
- This negative inflation follows a trend of disinflation and coincides with expectations that the Swiss National Bank will cut interest rates at its June 19, 2025 meeting.
- Core inflation slowed to 0.5%, domestic inflation eased to 0.6%, and services inflation dropped to 1.1%, reflecting steady easing across price measures.
- Analysts forecast one more 25 basis point SNB rate cut to reach a 0.00% policy rate, though further easing beyond June depends on significant economic slowdown.
- This deflationary signal suggests the Swiss economy has moderated inflation pressures but maintains resilience, influencing monetary policy decisions in the near term.
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Inflation in Switzerland fell into the negative zone in May. Questions and answers on deflation.
·Zürich, Switzerland
Read Full ArticleInflation in Switzerland continued its decline in May, even dropping in negative terrain over a year, announced on Tuesday the Federal Statistical Office, a news that revives the spectre of deflation and negative policy rates. But what does this mean for the purchasing power of households?
The decline of 0.1% in Switzerland in the accumulation in 12 months until May came in line with expectations, but reinforced the sense that the central bank will be obliged to act further.
·Brazil
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