The Swiss economy printed another decline in inflation as expected, supporting expectations of further easing by the SNB. Headline CPI fell 0.2% month-on-month in September, following the previous 0.1% drop.
Key Takeaways from the September Swiss CPI
- Headline figures disappoint: The Swiss CPI fell 0.2% month-over-month in September, with annual inflation holding at 0.2% compared to the same month last year
- Core inflation remains subdued: Core inflation (excluding fresh and seasonal products, energy, and fuel) registered just 0.7% year-over-year, while monthly core CPI declined 0.2%.
- Downward price pressures dominated: The monthly decline was driven by lower prices for supplementary accommodation and hotels, international package holidays, air transport, and hire of private transport.
Link to official Swiss Consumer Price Index (September 2025)
The weakness was in core inflation was broad-based, with domestic products down 0.3% month-over-month and imported products falling 0.1%. These decreases offset increases in knitwear, berries, and living room furniture.
The report raised fresh questions about the efficacy of the Swiss National Bank’s monetary easing cycle, putting additional pressure on policymakers to consider intervention measures.
With the policy rate already at zero and reports indicating 5.1 billion CHF in foreign currency purchases through Q2, analysts suggest FX intervention remains the more immediate policy lever rather than pushing rates into negative territory.
Market Reactions
Swiss Franc vs. Major Currencies: 5-min
Overlay of CHF vs. Major Currencies Chart by TradingView
The Swiss franc, which was already treading gradually lower leading up to the CPI release, turned broadly lower upon seeing the numbers confirm a steeper fall in price pressures compared to the previous month.
CHF managed to recover briefly on profit-taking against some of its peers as the London session progressed, although it held on to losses against NZD (+0.10%), GBP (+0.04%), and EUR (-0.04%) for a few more hours before rebounding. The franc also erased its post-CPI dip versus AUD (+0.14%) and CAD (+0.02%) to wind up in positive territory before the session closed.
