Swiss inflation unexpectedly eases to zero in November

ZURICH, Dec 3 (Reuters) - Switzerland's annual inflation rate unexpectedly slowed by a 10th of a percentage point in November to zero, slightly undershooting expectations, official data showed on Wednesday.

The consensus forecast of a Reuters poll of analysts was that inflation would remain unchanged at 0.1% last month.

According to the data published by the Federal Statistics Office, compared with the previous month, the Swiss consumer price index dropped by 0.2%, in line with the poll forecast.

The monthly decrease was due to factors including lower prices for hotels and package holidays, as well as new cars and certain vegetables, the office said. By contrast, housing rentals and prices for heating oil and air transport rose.

The data come just over a week before the Swiss National Bank is due to make its next interest rate-setting decision.

The SNB's benchmark rate is currently at zero, and the central bank has said it expects inflation will gradually begin moving upwards next year. Market expectations are presently that the bank will leave the benchmark rate unchanged next week.

The SNB targets an inflation rate of between 0 and 2%.