Switzerland: Year-on-year decline in consumer prices continues in September
October 8, 2013
Consumer prices rose 0.3% over the previous month in September, which contrasts the 0.1% fall observed in August. The monthly increase, which matched market expectations, mainly reflects higher prices for clothing and footwear due to end of summer sales. Prices for fuel and fresh food also registered higher variations.
After remaining unchanged in the previous two months, consumer prices inched down 0.1% in September over the same month last year, thus resuming the declining annual trend that began in September 2011 when the Swiss National Bank established the 1.20 CHF per EUR cap to counter the appreciation of the Swiss franc. The inflation rate remains well under the Bank's 2.0% target. Annual average variation in consumer prices was unchanged from August to September, remaining at minus 0.3%.
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