Switzerland’s consumer sentiment index fell sharply to -43 in March 2026, marking its lowest level since December 2023. This compares with -30 in each of the previous two months and came in well below forecasts of -32. The deterioration likely reflects the impact of the war with Iran and the associated surge in oil prices, which weighed on household confidence and led to a broad-based decline in sentiment. All major components weakened: perceptions of the past economic situation dropped to -62 (from -52), the economic outlook fell to -68 (from -31), the financial outlook declined to -32 (from -26), and the assessment of whether it is a good time to make major purchases slipped to -58 (from -55). Meanwhile, inflation expectations surged, with consumers anticipating significantly higher prices over the next 12 months (121.4 vs 98.3), while expectations for unemployment also increased (69 vs 64).