Even experts are surprised: Inflation drops significantly to 1.3 percent

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According to the statement made by the Federal Statistical Office (BFS) on Tuesday, inflation in particular fell from 1.7 percent in December to 1.3 percent this month. This means that Swiss consumer goods were 1.3 percent more expensive in January than in the same month the previous year.

The sharp decline came as a surprise. Economists surveyed by AWP predicted annual inflation would be between 1.5 and 2.2 percent.

Inflation increased from 1.4 percent to 1.7 percent in December. Before that, inflation had been hovering above 3 percent for months, but in June 2023 it fell below 2 percent for the first time since January 2022.

On the other hand, the national consumer price index (CPI) increased by 0.2 percent in January compared to the previous month, reaching 106.4 points. According to BFS, this increase is due to several factors, including the increase in electricity and hotel prices. Prices for motor vehicle insurance and food in restaurants and cafes have also increased. According to the information obtained, air transportation prices, as well as clothing and shoe prices, also decreased.

At its current level, inflation is still moderate in this country, even compared to abroad. For example, while this rate was 2.9 percent in Germany in January, it was 2.8 percent in the entire Eurozone. (SDA, smt)

Source :Blick