Investing.com -- Swiss inflation dropped to its lowest point in almost four years in February, according to government data released on Wednesday. This development increases the chances that the Swiss central bank may reduce rates later this month.

Consumer prices in February increased by 0.3% compared to the same time last year, marking the smallest increase since April 2021, due to cheaper imports.

While certain items, such as rents and packaged vacations, saw a price increase compared to a year ago, other items including second-hand cars, personal care products, and medicines became less expensive. This shift led to a decrease in the inflation rate from the 0.4% rate observed in January.

The data from the Federal Statistics Office showed that prices for domestic products increased by 0.9%, while the cost of imported goods fell by 1.5%. This discrepancy contributed to the overall decrease in the inflation figure.

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