Switzerland's January inflation remains at 0.1%, and the Swiss National Bank expects to cut interest rates.

2026-02-14 03:16:40

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Investing.com – Switzerland’s January inflation rate remains at 0.1%, in line with economists’ expectations. The core inflation rate for the month also remained stable at 0.5%.

Private services inflation dropped significantly from 1.3% in December to 1.0%, reaching its lowest level in over three years. This decline is mainly attributed to a sharp decrease in hotel inflation.

The persistently low inflation rate and the strength of the Swiss franc are expected to influence the Swiss National Bank (SNB) to cut its policy interest rate by 25 basis points to -0.25% this year. The most likely timing for this rate cut is in June.

The current inflation environment, combined with a strong currency, suggests Switzerland may experience zero inflation and negative interest rates by 2026.

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