Switzerland: Consumer prices post greatest drop since August in December
January 5, 2021
Consumer prices fell 0.10% in December over the previous month, softer than November's 0.25% fall. Looking at the details of the release, transportation prices rose at a quicker pace in December compared to the previous month, while prices pressures for healthcare dropped. Prices for food and non-alcoholic beverages fell at a more modest pace.
Consumer prices fell 0.8% year-on-year in December, down from November’s 0.7% fall. December's figure marked the largest fall in consumer prices since August. Accordingly, the trend was unchanged, with the annual average variation of consumer prices coming in at November's minus 0.7% in December.
Ongoing deflation will ensure the Swiss National Bank maintains its extremely expansionary monetary policy.
Author: Oliver Reynolds, Economist