Switzerland: Consumer prices record smallest fall since March in September
October 1, 2020
Consumer prices dropped 0.04% over the previous month in September, contrasting the 0.04% rise seen in August. September’s reading was driven by lower prices for housing and energy, and transport, which were partially offset by higher clothing and footwear prices.
Consumer prices decreased 0.8% year-on-year in September, a less pronounced drop compared to August’s 0.9% fall. September's figure was the smallest drop in consumer prices since March. Meanwhile, the trend pointed down slightly, with the annual average variation of consumer prices coming in at minus 0.6% in September (August: -0.5%).
The lack of price pressures will ensure the Swiss National Bank maintains its extremely expansionary monetary policy.
Author: Oliver Reynolds, Economist