Switzerland’s annual inflation unexpectedly dropped to 0% in April, the country’s statistics office announced Monday, marking the lowest level in four years and reinforcing expectations of a further interest rate cut by the Swiss National Bank (SNB) in June.
The figure places inflation at the very bottom of the SNB’s official target range of 0% to 2% for price stability. In March, annual inflation stood at 0.3%, and consumer prices remained flat month-over-month in April. Core inflation, which excludes volatile items like food and energy, registered at 0.6%—also below market forecasts.
The SNB had already cut its policy rate by 25 basis points on March 20, in line with expectations. With inflation now nearing deflation territory, analysts widely anticipate another rate cut in June, potentially bringing the policy rate down to 0%.
