Switzerland's annual inflation rate edged down to 0.6 percent in January 2019 from 0.7 percent in the previous month, in line with market expectations. It was the lowest inflation rate since February, as prices of housing, transportation, and food rose at a softer pace while healthcare costs continued to decline.
Year-on-year, prices rose at slower pace for housing and energy (0.3 percent vs 1.0 percent in December); transport (1.3 percent vs 1.8 percent); food and non-alcoholic beverages (0.8 percent vs 1.5 percent); miscellaneous goods and services (0.3 percent vs 0.5 percent); while recreation and culture prices were flat (vs 0.1 percent in December). In addition, healthcare prices continued to fall (-0.2 percent from -0.7 percent). On the other hand, restaurant and hotels inflation increased to 0.7 percent from 0.2 percent.
Annual core inflation, which strips out volatile price components like food, beverages, tobacco, seasonal products, energy and fuel, went up to 0.5 percent in January from 0.3 percent in the prior month.
On a monthly basis, consumer prices declined 0.3 percent, the same pace as in December and matching market consensus, mainly due to falling prices of clothing and footwear due to seasonal balances. The prices of heating oil, as well as those of medicines, have also fallen. On the other hand, prices for hotel accommodation and electricity rose.
2/11/2019 3:11:30 PM