Data released by the Swiss Federal Statistical Office on Thursday indicated that the Consumer Price Index – the inflation rate – in Switzerland slowed down during January, but aligned with expectations.
According to the data, the overall inflation rate in Switzerland slowed to 0.4% year-on-year in January, which was in line with market expectations that anticipated the Consumer Price Index to grow at the same rate. The previous reading showed a recorded inflation rate of 0.6% in Switzerland during December.
On a monthly basis, the Consumer Price Index in Switzerland contracted by 0.1% in January compared to the reading in December, which also matched expectations that indicated a contraction in the index by about the same percentage, after Switzerland recorded a contraction of 0.1% in the Consumer Price Index in the previous December.
It is worth noting that the demand for Swiss exports and the demand for the Swiss franc are directly related, as foreigners must buy the local currency to pay for the country's exports. The demand for exports also affects production and prices in local manufacturing companies.
