Switzerland: Consumer prices fall again in August
September 3, 2020
Consumer prices increased 0.04% in August over the previous month, contrasting the 0.16% drop seen in July. Looking at the details of the release, prices for housing and energy fell in August and prices for healthcare dropped after growing in the previous month. However, prices of restaurants and hotels increased.
Consumer prices fell 0.9% on an annual basis in August. August's reading marked the smallest dip in consumer prices since March. Meanwhile, the trend pointed down mildly, with the annual average variation of consumer prices coming in at minus 0.5% in August (July: -0.4%). Muted prices this year are being driven by low domestic demand and oil prices, as well as a strong franc.
Author: Oliver Reynolds, Economist