Swiss inflation at fastest in almost 2 years after growth jump
Consumer prices rose 0.8% in August from a year earlier, up from 0.4% in July.
Swiss inflation surged to its fastest pace in almost two years in August, surpassing analysts' expectations, according to the country's statistics office. Consumer prices increased by 0.8% year-on-year, up from 0.4% in July, exceeding every forecast of the 16 economists surveyed by Bloomberg. The spike was driven by a weaker Swiss franc, which is now at a one-year low against the euro.
Core inflation, excluding volatile elements like energy, also rose by 0.4%, marking the first acceleration since the start of 2026. The Swiss economy showed surprising growth in the second quarter, with output expanding by 1.5% and exports, particularly in pharmaceuticals and chemicals, leading the charge. Additionally, government spending outpaced private consumption for the third quarter.
Economists are optimistic about Switzerland's growth prospects, with a UBS note now projecting adjusted GDP expansion of 1.8% in 2026, up from the previous 0.7% forecast. The weaker franc and favorable trade deal with China are expected to contribute to Switzerland's economic recovery.
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