Consumer prices in Switzerland increased by 0.316% in April 2024, rising 1.4% over the previous 12 months, reported Switzerland’s Federal Statistical Office (FSO) this week. However, annualised, the monthly rate comes to 3.79%, a rate well above the Swiss National Bank’s (SNB) preferred maximum of 2%.
April’s 0.3% monthly price increase was driven by several factors including rising prices for packaged holidays abroad (+6.7%), airfares (+3.4%) and fuel (+3.1%). In contrast, gas, wood pellets and hotels were cheaper.
Most of the monthly jump in prices came from imported goods, which accounted for 81% of monthly inflation. During April the Swiss franc was fairly stable against the euro ending the month close to where it started. However, the franc lost 1.6% of its value against the US dollar during the month. On 21 March 2024, the SNB lowered its key interest rate from 1.75% to 1.5%. The rate change, which was out of step with key central banks, surprised the market and was followed by a roughly 2% decline in the value of the franc against the US dollar between the date of the announcement and the end of April. This weakening of the cuurency would have increased the price of US dollar denominated imports, feeding inflation.
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