Switzerland’s CPI Remains Flat in April

Switzerland’s CPI Remains Flat in April

On May 5, 2025, the Swiss Federal Statistical Office released the latest Consumer Price Index (CPI) data for Switzerland, revealing a month-on-month (m/m) CPI of 0.0% for April. This figure aligns with the previous month’s reading of 0.0% but falls short of market expectations, which had forecasted a modest uptick to 0.2%. The year-on-year (y/y) CPI also reached 0.0%, down from 0.3% in the prior month, marking the lowest annual inflation level since early 2021. Meanwhile, the core CPI (y/y), which excludes volatile items like energy and food, arrived at 0.6%, slightly below the anticipated 0.8% and the previous 0.9%. The EU-harmonized CPI (m/m) stood at 0.7%, a notable shift from the previous -0.1%, while the harmonized y/y figure reached 0.3%, up from 0.1%.

The release of this data at 08:30 CEST today sparked discussions among analysts, as it underscores Switzerland’s ongoing low-inflation environment. The flat m/m CPI suggests that consumer prices remained unchanged from March to April, driven largely by declining energy and transportation costs, coupled with a strong Swiss Franc (CHF) that continues to curb imported inflation. Goods prices reflected deflationary pressures at -2.0% y/y, while services inflation cooled to 1.4% y/y, indicating subdued domestic price growth. This morning’s announcement, widely shared across financial platforms, highlights the Swiss National Bank’s (SNB) challenge in managing inflation below its target range.

Market participants noted that the data, released promptly by the Swiss authorities, reinforces expectations of potential SNB rate cuts in the near future. The weaker-than-expected CPI figures, particularly the core inflation reading, suggest limited upward pressure on prices, giving the SNB room to maintain or adjust its accommodative monetary policy. The CHF faced mild downward pressure in early trading sessions today, as traders adjusted positions based on this fresh economic insight.

Today’s CPI release is a critical piece of economic data for investors and policymakers alike, offering a snapshot of Switzerland’s price stability. The timing of the announcement, coinciding with global market openings, amplified its impact on currency and bond markets. Analysts expect the SNB to closely monitor these trends, with further updates anticipated in June 2025.