Swiss Inflation Rises, Unemployment Steady in June

Switzerland's inflation rose to 0.1% year-on-year in June 2025, rebounding from a slight decline in May and returning to the Swiss National Bank's (SNB) target range of 0-2%. The uptick was mainly driven by higher prices for domestic products, including rents and some foodstuffs, while imported goods remained cheaper due to a stronger franc and lower oil prices. On a monthly basis, consumer prices increased by 0.2%. The SNB had recently cut its key interest rate to zero to counter the franc's strength and support inflation, while leaving open the possibility of negative rates if deflation risks persist. Switzerland's unemployment rate held steady at 2.7%, with a minor rise in youth unemployment and reported job vacancies increasing. Economists expect low but positive inflation for the remainder of 2025, with the SNB projecting a gradual inflation increase over the coming years.