Urgent - A slowdown exceeding expectations in Swiss inflation data for September.

Data released by the Swiss Federal Statistical Office on Thursday indicated that the Consumer Price Index – the annual inflation rate – in Switzerland stabilized during the month of September.

According to the data, the general inflation rate in Switzerland remained at 0.8% year-on-year in September, which was lower than market expectations that anticipated a consumer price index growth of 1.1%. The previous reading of general inflation in Switzerland for the month of August was 1.1%.

On a monthly basis, Switzerland experienced a contraction in inflation in September, with the Consumer Price Index shrinking by 0.3% compared to August, which was contrary to expectations that indicated a contraction in inflation of only 0.1%. This came after the Consumer Price Index recorded no change in August, resulting in an inflation rate of 0.0%.

It is worth noting that the demand for Swiss exports and the demand for the Swiss franc are directly linked since foreigners must purchase the local currency to pay for the country's exports. The demand for exports also affects production and prices in local manufacturing companies.