Annual inflation in Switzerland drops to its lowest level since June 2021 in October.

Data released by the Swiss Federal Statistical Office on Friday indicated that the Consumer Price Index - inflation rate - in Switzerland slowed down in October on a year-on-year basis, recording its lowest level since June 2021.

According to the data, the overall inflation rate in Switzerland slowed to 0.6% year-on-year in October, which was lower than market expectations of a 0.8% increase in the Consumer Price Index. It is noted that the previous reading for Switzerland in September was 0.8%.

On a monthly basis, inflation in Switzerland contracted by 0.1% in October, which was contrary to expectations that indicated inflation would remain around 0.0%, following a monthly contraction of 0.3% in September.

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