2023.12.0411:36:00UTC+00Swiss Inflation Slows Unexpectedly To 1.4%, Lowest In 25 Months

Switzerland's consumer price inflation eased unexpectedly in November to the lowest level in just over two years amid a slowdown in prices in a broad number of categories, the Federal Statistical Office reported Monday.

The consumer price index, or CPI, climbed 1.4 percent year-over-year in November, after a 1.7 percent stable rate of increase in October. Meanwhile, economists had expected inflation to remain stable at 1.7 percent.

Moreover, inflation remained within the central bank's target range of 0-2 percent.

Overall inflation was largely driven by a 3.2 percent rise in prices for housing and energy, which grew 2.6 percent in October.

Costs for food and non-alcoholic beverages also rose 3.2 percent in November, slightly below the 3.3 percent gain a month ago.

On the other side, transport costs dropped 1.7 percent, and those for healthcare dropped by 0.8 percent.

On a monthly basis, consumer prices dropped 0.2 percent in November, reversing a 0.1 percent rise in the previous month. The monthly decline was due to several factors, including lower prices for hotels and international package holidays.

Data showed that core inflation edged down to 1.4 percent from 1.5 percent. The monthly outcome was flat.

"The unexpected fall in Swiss inflation in November ensures that the SNB will not be at all tempted to raise interest rates in December, despite the Bank's recent statements to the contrary," Adrian Prettejohn, an economist at Capital Economics, said.