Switzerland: Consumer prices continue downward trend
March 8, 2013
In February, consumer prices rose 0.3% over the previous month, which marked the first monthly increase after three consecutive drops. The reading was in line with market expectations and mainly reflected higher prices for clothing and footwear as well as for transport.
Nevertheless, annual consumer prices fell 0.3% in February, which matched a drop of the same magnitude in January and marked the 17th consecutive month of deflation. As a result, the inflation rate sits well below the Swiss National Bank's 2.0% inflation target. Annual average consumer prices fell 0.6% in February.
The Swiss National Bank expects consumer prices to drop 0.1% in 2013. For 2014, the Bank expects inflation to rise to 0.4%. Panellists polled by FocusEconomics expect inflation to rise 0.2% in 2013, which is unchanged from last month's forecast. For 2014, panellists expect inflation to rise to 0.8%.
Author: Ricardo Aceves, Senior Economist