Switzerland: Price pressure remains weak in October
November 7, 2012
In October, consumer prices inched up 0.1% over the previous month, which was below the 0.3% increase recorded in September, but was in line with market expectations. According to the Federal Statistics Institute, the monthly increase reflected higher prices for clothing and footwear. Consumer prices dropped 0.2% over the same month last year in October, which was above the 0.4% decline observed in September. The figure marked the 13th consecutive month of annual deflation and currently sits well below the Swiss National Bank's 2.0% inflation target. Annual average variation in consumer prices remained unchanged at September's minus 0.7%. 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