Switzerland Inflation Falls to 0% in April
As of April 2025, Switzerland's annual inflation rate has dropped to 0%, marking the lowest level in the past four years. The figure aligns with the lower boundary of the Swiss National Bank’s (SNB) inflation target range.
The decline was primarily driven by a reduction in imported goods prices. Energy, fuel, and other imported items saw an average price drop of 2.5%. In contrast, domestically produced goods experienced a 0.8% increase. Meanwhile, housing rents—accounting for over a quarter of the consumer price index—rose by 3.1%, slightly offsetting the downward pressure.
The Swiss franc also appreciated significantly, gaining approximately 9% against the US dollar. This currency strength helped reduce import costs, further contributing to the low inflation reading.
The Swiss National Bank is closely monitoring the situation. Officials have indicated that, if necessary, they are prepared to cut interest rates further and intervene in currency markets to stabilize prices. The SNB’s next monetary policy meeting is scheduled for June 19.
Economic growth forecasts have also been revised downward. The Swiss government now expects GDP to grow by 1.4% in 2025, below the long-term average. The revision is attributed to ongoing global trade tensions and newly imposed tariffs on Swiss exports.
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