Swiss inflation drop spurs expectations of rate cuts
ZURICH, Sept 3 (Reuters) -The Swiss annual inflation rate fell to 1.1% in August, the government said on Tuesday, raising expectations for another interest rate cut by the Swiss National Bank later this month.
August's inflation rate marked a fall from the 1.3% rate in July and was the 14th month in a row that price rises have been within the SNB's 0-2% target range.
It was also lower than the Reuters forecast for 1.2%.
Month-on-month consumer prices were flat, below the forecast 0.1% increase, the Federal Statistical Office said.
While housing and energy were more expensive than a year earlier, clothes along with household goods and services were cheaper than in August 2023.
The data spurred expectations for another rate cut by the SNB, which will announce its next interest rates decision on Sept. 26.
The markets now give a 70.5% probability of a 25 basis point cut from the current level of 1.25%, with 29.5% probability given to a 50 basis point cut.
Reporting by John Revill, Editing by Rachel More
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