Swiss inflation falls to 0% in April

BERLIN

Annual inflation in Switzerland hit an unexpected 0% in April, the country’s statistics office said Monday, raising expectations of another interest rate cut in June.

The figure marks the lowest inflation level in four years and sits at the bottom of the Swiss National Bank’s (SNB) 0% to 2% target range for price stability.

In March, year-over-year inflation stood at 0.3%, according to preliminary data from the Swiss Statistical Institute.

Consumer prices were unchanged on a monthly basis.

Core inflation in Switzerland, which excludes volatile prices such as food and energy, was 0.6% in April, also below analysts’ expectations.

The SNB cut its policy rate by 25 basis points on March 20, as expected.

The central bank is now expected to reduce the policy rate to 0% at its June meeting amid concerns that inflation could slip into negative territory.