2023.06.0513:24:00UTC+00Swiss Inflation Eases To 2.2%, Lowest In 15 Months

Switzerland's consumer price inflation eased as expected in May to the lowest level in more than a year amid a slowdown in prices for a broad number of categories,?the Federal Statistical Office reported Monday.

The consumer price index, or CPI, climbed 2.2 percent year-over-year in May, slower than the 2.6 percent gain in April.

Further, this was the weakest rate of increase since February last year, when prices had risen the same 2.2 percent. Nonetheless, inflation is still above the central bank's target range of 0-2 percent.

Overall inflation was largely driven by a 5.3 percent rise in prices for food and non-alcoholic beverages, though slightly slower than the 5.4 percent increase in April.

The annual price growth in housing and energy eased to 3.2 percent from 3.7 percent. Meanwhile, transport costs dropped 0.5 percent.

On a monthly basis, consumer prices moved up 0.3 percent in May after remaining flat in the previous month.

Data showed that core inflation slowed to 1.9 percent from 2.2 percent. The monthly outcome was an increase of 0.2 percent in May. "Another sharp fall in headline and core inflation in May brought Switzerland within touching distance of the 0-2 percent range the SNB equates with price stability," Capital Economics economist Adrian Prettejohn said.

"But with recent comments from Chairman Thomas Jordan sounding quite hawkish, we still expect the Bank to hike rates further."