FX.co ★ Swiss Inflation Rises To 1.4%, Highest In 4 Months

On Thursday, it was reported by the Federal Statistical Office that consumer price inflation in Switzerland had risen noticeably in April, reaching its highest level in four months. This inflation, determined by the consumer price index (CPI), was marked at 1.4 percent, increasing from March's 1.0 percent. This caused a surprise among economists who had predicted a slight inflation increase to just 1.1 percent for April.

Despite the unexpected increase, the inflation rate remains within Switzerland Central Bank's target range of 0 to 2 percent.

In terms of sectors, the price of food and non-alcoholic beverages experienced a reversal from the previous month, growing annually by 1.0 percent in April after recording a 0.4 percent decrease in March. In contrast, costs associated with housing and utilities increased by a significant 3.3 percent. Monthly, consumer prices increased slightly by 0.3 percent after exhibiting no change in March.

On the other hand, retail sales in March performed less favourably. Official data indicated that retail sales fell on an annual basis by 0.1 percent, countering the 0.2 percent increase seen in the preceding month. Both non-food and food products experienced a 0.6 percent sales decline compared to last year in March. Furthermore, on a monthly basis, retail sales in March fell by 0.4 percent, contradicting February's increase of 0.1 percent.