Consumer prices declined in July, underscoring how different Switzerland’s inflation story is from much of the world. Over the month the consumer-price index fell by 0.1% from June, leaving prices just 0.4% higher than a year earlier, according to the Federal Statistical Office (FSO). Core inflation, which strips out fresh and seasonal products, energy and fuel, was even weaker, at 0.3% year on year.
The monthly decline owed much to cheaper travel, fuel and clothes. International air fares fell by 4.3% from June, diesel by 5.8% and petrol by 2.4%. Seasonal sales pushed clothing and footwear prices down by 8.5%, making the category the largest decliner among the main spending groups.
Healthcare costs were unchanged in July and 0.5% lower than a year earlier. It is worth noting, however, that the healthcare component of the CPI excludes compulsory health-insurance premiums. Instead, it tracks the prices of healthcare goods and services themselves, such as medicines, doctors’ visits and hospital treatment. Insurance premiums can rise not only because healthcare becomes more expensive, but also because people consume more of it. Official healthcare inflation can therefore remain subdued even as households face steep increases in their annual insurance bills.
Not everything became cheaper. Housing and energy prices rose by 0.2% over the month, while prices in restaurants and hotels climbed by 1.1%. Heating oil jumped by 9.5%, car rental and car-sharing by 26.7%, and non-hotel accommodation by 19.7%. Yet these increases were not enough to offset declines elsewhere.
Prices for domestic products rose by 0.1% in July and were 0.5% higher than a year earlier. Imported goods, by contrast, fell by 1.1% on the month and were unchanged from July 2025. Goods prices overall were 0.5% lower than a year ago, whereas services were 0.9% more expensive.
That divergence points to two different forces at work. Tradable goods are delivering deflation, helped in July by fuel and seasonal retail discounts. Services, which tend to be more closely tied to domestic wages and costs, are still becoming dearer. Even so, the pressure is muted. Private-service prices were up 1.1% from a year earlier, while public services rose by just 0.2%.
July’s decline was partly seasonal and partly driven by volatile components such as fuel and air travel. But with headline inflation at 0.4% and core inflation at 0.3% for the year, it will be harder for Swiss unions to justify demands for higher wages.
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