Slowing Swiss inflation opens door for earlier SNB cuts

Inflation unexpectedly eased in January, a development that could open the door to earlier rate cuts at the Swiss National Bank (SNB). Consumer prices rose by 1.3% in January from a year earlier, the Swiss federal statistical office (FSO) office said Tuesday. That’s much less than the 1.7% predicted by economists, which would have matched the December reading. The so-called core gauge, which strips out volatile elements like energy and food, also slowed to 1.2%. The drop comes as a surprise as many prices in the Swiss economy are regulated and those for electricity rose at the beginning of the year. January also marked a boost in value-added tax to 8.1% from 7.7%. + What’s in store for the Swiss economy in 2024? “We are seeing the predicted price increases, but underlying price pressures are just extremely low,” said Karsten Junius, chief economist at Bank J Safra Sarasin Ltd. SNB President Thomas Jordan has said that while inflation wouldn’t exceed the central bank’s target – ...