Swiss Inflation Stays Steady In Face Of US Tariffs

(MENAFN- Swissinfo) Swiss inflation stayed positive for a third consecutive month, offering reassurance to policymakers as they also evaluate if the economy can weather a jump in United States tariffs. This content was published on September 5, 2025 - 10:49 3 minutes Bloomberg

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Consumer prices rose 0.2% from a year ago in August, matching the increase of the previous month, the country's statistics office said on Thursday. Most economists in a Bloomberg survey had anticipated inflation to stay at that level or accelerate.

The report marks the final glimpse of price data before the Swiss National Bank's quarterly decision later this month. Signs of some inflation may lessen pressure on officials to cut interest rates again at a time when the economy is threatened by President Donald Trump's disproportionately high US tariffs of 39%.

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The reading is strong enough to raise the prospect that price growth in the third quarter may end up exceeding the 0.1% average predicted by the SNB at its last policy decision in June.

Inflation tipped to rise slightly

“At this stage, we do not see any risks of deflationary developments, and our forecasts show a jump in inflation in the coming quarters,” SNB vice-president Antoine Martin said in an interview with L'Agefi published last week.

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A gauge stripping out volatile elements such as energy climbed 0.7%, compared with 0.8% in July.

As in previous years, August proved a pivotal month for the adjustment of rents in Switzerland, helping to push up the overall index - along with clothing and footwear - to offset lower prices for holiday-related activity.

“We see headline inflation rebounding slightly over the coming months, hovering around 0.5%. While price dynamics remain subdued, inflation continues to evolve within the SNB's 0–2% target band. The impact of a strong Swiss Franc on domestic prices and the hit to growth of higher-than-expected US-tariffs are however key risks for the SNB. We expect the Swiss central bank to cut rates later this year,” said Bloomberg economist Jean Dalbard.

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