Switzerland’s annual inflation rate returned to positive territory in December, government data revealed on Thursday, signalling a modest pick-up after months of stagnation.

The 0.1% rise in consumer prices was in line with analyst expectations surveyed by Reuters news agency and marked an increase from the flat reading recorded in November.

Despite this uptick, inflation remains at the lower end of the Swiss National Bank’s (SNB) target range, highlighting the ongoing subdued price pressures in the Swiss economy.

The SNB aims to maintain inflation between 0% and 2%, although it has recently indicated that it is prepared to tolerate temporary undershoots of this target.

When asked about the latest figures, the central bank declined to comment.

Looking at the broader picture, the average inflation rate for 2025 stood at just 0.2%, far below the 1.1% recorded in 2024 and the 2.1% observed in 2023.

This trend reflects Switzerland’s relatively stable price environment, even amid broader global inflationary pressures.

Furthermore, the Federal Statistics Office reported that certain costs did rise last year, including housing rents, chocolate, and meals.

Conversely, prices for electricity, petrol, and second-hand cars fell, demonstrating a mixed pattern across different sectors.

Domestic Swiss-made products experienced an average price increase of 0.7% in 2025, while imported goods saw their prices drop by 1.6%, partially offsetting the domestic inflationary pressures.

In addition, on a monthly basis, Switzerland’s consumer price index remained unchanged in December compared with November, slightly above the 0.1% decline predicted in the Reuters poll.

This stability suggests that, for the time being, inflationary pressures are contained, providing the SNB with some flexibility in its monetary policy.

Overall, Switzerland continues to experience one of the lowest inflation rates among advanced economies.

While certain everyday items became more expensive last year, declines in energy and imported goods kept overall price growth modest, underscoring the resilience of the Swiss economy in the face of global price fluctuations.