Switzerland’s annual inflation slowed in June for the first time in eight months, remaining comfortably within the Swiss National Bank’s target range, official data showed Thursday.
Consumer prices rose 0.5% year-on-year in June, easing from a 0.6% increase in May, according to the Swiss Federal Statistical Office.
The figure matched market expectations.
The slowdown suggested that lower oil costs have started to feed through to the domestic economy, with falling prices for flights, heating oil and diesel offsetting higher costs for vegetables, hotels and car rentals.
Core inflation, which excludes volatile items such as energy, was unchanged at 0.3%.
The latest reading remained within the 0% to 2% range targeted by Swiss monetary authorities, who expect only a mild pickup in inflation this year and no major change in medium-term price pressures.
Using the harmonized consumer price index methodology applied in the euro area, Swiss annual inflation stood at 0.7% in June. This compared with 2.8% in the eurozone, underlining Switzerland’s relatively subdued price pressures despite earlier energy-market strains.
The data came as external pressures from higher energy prices and safe-haven inflows into the Swiss franc showed signs of easing.
With interest rates at zero, the Swiss National Bank has been relying more actively on currency interventions to counter excessively low inflation risks linked to franc strength, which reduces import costs.
