Swiss Inflation Stalls in April

(MENAFN) Annual inflation in Switzerland recorded an unforeseen halt at 0 percent in April, as reported by the nation's statistics agency on Monday.

This surprising result has increased speculation that the Swiss National Bank (SNB) may implement another interest rate reduction in June to counteract the subdued inflation trend.

This flat inflation rate is the lowest observed in the past four years and aligns precisely with the lower boundary of the SNB’s defined target range for price stability, which is 0 percent to 2 percent.

This suggests that price growth in the Swiss economy has stagnated, signaling minimal upward pressure on the cost of goods and services.

According to early figures released by the Swiss Statistical Institute, inflation on a yearly basis in March was 0.3 percent, indicating a further slowdown in April.

Additionally, consumer prices remained stable compared to the previous month, showing no increase or decrease in average prices.

Core inflation, which omits fluctuating categories like food and energy, stood at 0.6 percent in April.

This was also lower than what financial experts had anticipated, underscoring a broader trend of muted price movements within the economy.

On March 20, the SNB already acted by trimming its policy interest rate by 25 basis points, a move that had been widely forecast.

However, with inflation now hovering at the edge of deflation, the central bank is now predicted to go further by potentially lowering its benchmark rate to 0 percent during its upcoming June meeting.

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