Swiss inflation returns to positive territory in June

ZURICH, July 3 (Reuters) - Swiss inflation returned to positive territory in June, government data said on Thursday, easing concerns the country could enter a phase of deflation.

Consumer prices rose by 0.1% in June compared with a year earlier, according to figures from the Federal Statistics Office, as price rises for domestic products offset cheaper imports.

It was a turnaround from the 0.1% decline in May, and meant inflation returned to the Swiss National Bank's price stability target of prices increasing annually by 0-2%.

Compared with May, Swiss prices were 0.2% higher in June, due to rising prices for international holidays and hotels, while food and drink became more expensive.

The figures are likely to please the SNB, which last month cut its interest rate to zero in a move designed to weaken the Swiss franc. The rise in the safe-haven currency has been a factor in low Swiss inflation by making imports cheaper.

The central bank last month forecast annual inflation of 0.2% for Switzerland during 2025, before rising to 0.5% in 2026 and 0.7% in 2027.

The SNB declined to comment on the latest inflation figures on Thursday.