this post was submitted on 04 Dec 2023
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Switzerland

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Swiss inflation unexpectedly slowed to a two-year low, adding to the case for Swiss National Bank (SNB) officials to keep borrowing costs steady when they meet next week.

Consumer prices rose 1.4% in November from a year earlier, the weakest since October 2021. That was lower than predicted by any economist in a Bloomberg survey, which foresaw no change from 1.7%. The drop was driven by lower costs for hotels, package holidays, fuel and fruit and vegetables.

The so-called core gauge, which strips out volatile elements like energy and food, also decelerated to 1.4%, the Swiss statistics office said Monday.

With Switzerland’s inflation rate keeping within the central bank’s target range of between 0 and 2%, the SNB paused hiking in September. Officials led by President Thomas Jordan have been careful to stress that more tightening might be required. ...

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