Swiss inflation fell again in December, according to data on Tuesday, fuelling expectations for more interest rate cuts by the Swiss National Bank this year that markets now view as virtually certain.

“The decline in core and headline inflation in the last month of 2024 — despite upward pressures from energy — confirms the weakness in Switzerland’s underlying price gains. There’s more to come going into 2025, when we expect energy contributions to turn sharply negative — we see the headline reading dropping to 0.2% in January.”