Consumer prices stagnated in July, unchanged from the previous month while increasing 0.2 percent over a year ago, while falling 0.1 percent month-on-month when excluding fresh and seasonal products, energy and fuels. This core inflation measure was 0.8 percent higher than July of last year.

Prices for domestic goods rose 0.2 percent on the month and 0.7 percent from a year ago. Imported inflation, however, declined 0.9 percent in July and 1.4 percent on the year, likely due to the strength of the Swiss franc.

Consumer goods prices fell 0.4 percent in July, with those for semi-durable goods down 4.3 percent on the month. Consumers found durables goods prices 0.4 percent less expensive than the previous month.

International package tour costs fell 2.0 percent in July and were down 1.6 percent year-on-year, while airfares fell 5.6 percent and 6.0 percent on a monthly and annual basis, respectively. This shows that consumers have more purchasing power for discretionary spending.

On the energy side, petroleum products were 0.9 percent more expensive in July than a month ago, while 8.9 percent cheaper from a year ago. Excluding these, the price index fell 0.1 percent in July, and was up a modest 0.5 percent from a year ago.

Currently there are no signs of a pickup of inflation in the Swiss economy which will give the Swiss National Bank scope to move official interest rates lower at their September meeting. Should they do so, it will take them back into negative territory. The strong Swiss franc will also keep imported inflation in check, which can also mitigate some of the potential impact of US tariffs.

The consumer price index (CPI) is an average measure of the level of the prices of goods and services bought for the purpose of consumption by Swiss households. Monthly and annual changes in the CPI provide widely used measures of inflation. The policy target measure for the Swiss National Bank (SNB), the annual CPI rate can be distorted by swings in prices amongst the more volatile subsectors and the CPI excluding fresh food and energy is used as a better guide to underlying short-term trends. Although not a member of the Eurozone, a harmonized index of consumer prices (HICP), measured according to Eurostat's procedures, is also published alongside the CPI.

The consumer price index is the most widely followed indicator of inflation. An investor who understands how inflation influences the markets will benefit over those investors that do not understand the impact. Inflation is an increase in the overall prices of goods and services. The relationship between inflation and interest rates is the key to understanding how indicators such as the CPI influence the markets- and your investments. Inflation (along with various risks) basically explains how interest rates are set on everything from loans to notes and bonds. As the rate of inflation changes and as expectations on inflation change, the markets adjust interest rates. The effect ripples across stocks, bonds, commodities, and your portfolio, often in a dramatic fashion. By tracking inflation, whether high or low, rising or falling, investors can anticipate how different types of investments will perform. Over the long run, the bond market will rally (fall) when increases in the CPI are small (large). The equity market rallies with the bond market because low inflation promises low interest rates and is good for profits.