Switzerland’s annual inflation rate decreased to 0.4% in January 2025, aligning with market expectations and down from 0.6% in December.
Switzerland inflation falls to 0.4%
This marks the lowest inflation rate since April 2021, primarily driven by ongoing deflationary trends in several key sectors. Prices for food and non-alcoholic beverages fell by 1.1%, slightly worsening from a 0.9% drop in December. Clothing and footwear saw a smaller decline of 0.1%, compared to 1.4% in December. Similarly, household goods and services decreased by 1.4%, an improvement from the previous month’s 2.3% decline, while healthcare prices dropped by 0.6%, improving from a 0.8% fall.
Transport costs also saw a notable drop of 0.8%, a better performance than the 1.9% decrease in December. Additionally, the growth in housing and energy prices slowed to 1.6%, down from 3.4% in the previous month, and the increase in recreation and culture prices eased to 0.5% from 1.1%.
Switzerland core inflation edges up to 0.9%
In contrast, Switzerland’s annual core inflation rate, which excludes volatile items such as unprocessed food and energy, edged up to 0.9% in January from 0.7% in December, indicating a slight increase in underlying price pressures. Every month, the Consumer Price Index (CPI) dropped by 0.1%, matching the decline observed in December, suggesting stable inflation trends in the short term.
