Consumer price inflation in Switzerland picked up to its fastest pace in 14 years in January, data showed on Friday, rising above the Swiss National Bank's stability threshold for the first time since mid-1995. But consumers remained upbeat in the first quarter as households took a positive view on their income despite growing pessimism about the general outlook for the economy.
Consumer prices fell 0.3 percent compared to December as retailers slashed prices for clothes and shoes, but the annual inflation rate jumped to 2.4 percent, driven by high costs for oil and fuel, the Federal Statistics Office said.
Economists had expected the annual rate to rise above the SNB's ceiling for price stability of 2 percent, with median forecasts at 2.2 percent after 2.0 percent in December. Swiss consumers remained upbeat although consumer sentiment dipped by one point to +14 points, above economists' expectations of +11 points.