Switzerland: Switzerland remains in deflation for one year
October 8, 2012
In September, consumer prices jumped 0.3% over the previous month, which followed the flat reading recorded in August, but was in line with market expectations. According to the Federal Statistics Institute, the monthly increase reflected higher prices for clothing and footwear as well as for alcoholic beverages and tobacco. Consumer prices dropped 0.4% over the same month last year, which was slightly above the 0.5% decline observed in August. The figure marked the 12th 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 inched down from August's minus 0.6% to 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