Swiss Inflation Stays Positive in Limited Relief for SNB
(Bloomberg) — Swiss inflation stayed just above zero in January, offering limited respite to the Swiss National Bank from pressure to reintroduce negative interest rates.
Consumer prices rose 0.1% from a year earlier, Switzerland’s statistics office said on Friday. That matched December’s reading and the median estimate in a Bloomberg survey of economists.
Prices fell from a month earlier, because of lower costs of accommodation and electricity, which became 4% cheaper across the country at the start of 2026. Swiss utility rules mean that such bills are only adjusted for households once a year. Hotels, package holidays and car insurance all became more expensive. A measure for underlying inflation held at 0.5%.
While the headline gauge is in line with the SNB’s forecast for the first quarter, it also highlights just how feeble price growth remains in Switzerland.
What Bloomberg Economics Says…
“The expected bumpy recovery of Swiss inflation remains on track despite the franc’s sharp appreciation recently. Overall, the price dynamic remains muted while the currency’s strength poses sizable downside risks over the coming months. The latest steady reading should comfort the SNB in its current medium-term approach, as it looks through any temporary weakness in inflation.”
—Jean Dalbard, economist. For full React, click here
President Martin Schlegel warned last month that this year may see even negative readings. Officials have repeatedly insisted that there remains a substantially higher bar to cutting rates below zero compared with a conventional reduction, though they will do so if price stability is threatened.
The SNB, which in December predicted that inflation would average 0.1% in the first quarter, has kept rates unchanged since June. Most economists don’t expect it to move for the rest of this year.
The strong franc is a key driver of weak Swiss inflation — predicted by the SNB to average just 0.3% in 2026 — as it reduces import prices in the trade-focused country.
Schlegel has said that excessive franc appreciation from global haven flows could threaten price stability in Switzerland, adding that the central bank wouldn’t hesitate to act in such a scenario.
Inflation in the surrounding euro area remains much stronger than in Switzerland. Based on the European Union’s harmonized measure, the Swiss inflation rate was 0.2% in January.
–With assistance from Kristian Siedenburg, Harumi Ichikura and Joel Rinneby.
(Updates with BE comment after fourth paragraph. An earlier version of this story corrected the headline number.)
©2026 Bloomberg L.P.
