Switzerland: Switzerland remains in deflation for 11th consecutive month
September 5, 2012
In August, consumer prices remained flat over the preceding month, which was above both the 0.5% drop recorded in July and market expectations of a 0.6% fall. According to the Federal Statistics Institute, lower prices for clothing and footwear offset higher prices for transport and energy. As a result of the monthly reading, consumer prices dropped 0.5% over the same month last year, which nonetheless was above the 0.7% decline recorded in July. The figure, which market the 11th consecutive month of annual deflation currently sits well below the Swiss National Bank's 2.0% inflation target. Annual average variation in consumer prices remained unchanged at July's 0.6%. The Swiss National Bank predicts inflation to average minus 0.5% this year. For 2013, the Bank sees inflation rising to 0.3%.
Author: Ricardo Aceves, Senior Economist