Swiss inflation rate drops to three-year low

In September, inflation weakened to the slowest pace in more than three years, pointing to further monetary easing by the country’s central bank. Consumer prices rose 0.8% from a year ago in September, Switzerland’s statistics office said on Thursday. That’s much lower than the 1% median estimate in a Bloomberg survey and compares with 1.1% in August. Costs for holidays and air travel fell, as did prices for gasoline, heating oil and diesel, offsetting higher charges for clothing and footwear, according to a statement. The core reading – excluding fresh and seasonal products as well as energy – also retreated and is now at 1%. Like the euro area surrounding it, Switzerland is in a cycle of rate reductions and disinflation. The Swiss National Bank (SNB) lowered borrowing costs for a third time last week, with the central bank’s new president, Martin Schlegel, saying that more cuts look “likely”. In a speech on Tuesday, he highlighted that Swiss consumer-price growth currently is ...