Switzerland: Consumer prices unchanged over August 2012
September 6, 2013
In August, consumer prices fell 0.1% over the previous month (July: -0.4% month-on-month), a reading that fell short of the stable figure the markets had expected. According to the statistical office, the monthly decline reflects lower prices for fresh food and for clothing due to seasonal factors.
Consumer prices were unchanged in August compared to the same month last year, following the same result in July. Year-on-year changes in consumer prices began to show negative readings since October 2011, following the Swiss National Bank's decision to establish the 1.20 CHF per EUR cap in order to counter a strong appreciation of the Swiss Franc. The inflation rate still sits well below the Bank's 2.0% target. Annual average variation in consumer prices inched up from minus 0.4% in July to minus 0.3% in August.
The Central Bank expects consumer prices to drop 0.3% this year, according to its June macroeconomic outlook. For 2014, the Bank expects inflation to rise 0.2%. Panelists polled by FocusEconomics see inflation at 0.2% in 2013, which is down 0.2 percentage points from last month's forecast. For 2014, panelists expect inflation to rise to 0.6%.
Author: Ricardo Aceves, Senior Economist