Switzerland: Annual consumer prices fell for 15th consecutive month in December
January 11, 2013
In December, consumer prices slid 0.2% over the previous month, which followed the 0.3% decline recorded in November, but came in below market expectations of a 0.1% fall. Lower prices for clothing and footwear as well as for medicaments, were the main drivers behind the monthly decline.
As a result of the monthly drop, annual consumer prices dropped 0.4% in December, which followed a drop of the same magnitude in November. The result represents the 15th consecutive month of annual deflation and currently sits well below the Swiss National Bank's 2.0% inflation target. In addition, annual average consumer prices fell 0.7% in 2012 - in line with FocusEconomics expectations - but contrasted the 0.2% increase observed in 2011.
The Swiss Statistics Office sees inflation rising to 0.2% this year and next. In contrast, the Swiss National Bank expects consumer prices to drop 0.1% in 2013. For 2014, the Bank expects inflation to rise to 0.4%.
Author: Ricardo Aceves, Senior Economist