Switzerland: Switzerland remains in deflation for 10th consecutive month
August 7, 2012
In July, consumer prices slipped 0.5% over the previous month, which followed a 0.3% decline in June. The reading exceeded market expectations of a 0.6% fall. According to the statistical institute, lower prices for clothing and footwear as well as for housing and housing equipment were the main drivers behind the monthly drop. As a result of the monthly fall, consumer prices declined 0.7% over the same month last year, which followed the 1.1% drop observed in June and marked the 10th consecutive month of annual deflation. Currently, inflation sits well below the Swiss National Bank's 2.0% inflation target. Annual average variation in consumer prices fell from minus 0.5% in June to minus 0.6% in July.
Author: Ricardo Aceves, Senior Economist