Switzerland Falls Deeper Into Deflation

Swiss consumer prices declined by 0.8 percent in February of 2015 compared with the same month of the previous year. It is the fourth consecutive drop as transport prices continue its downward trend.

Year-on-year, transport cost recorded the largest drop (-3.9 percent), followed by health (-1.9 percent) and leisure and culture (-1.8 percent). Prices of housing and energy decreased by 0.5 percent and food prices fell by 0.5 percent. In contrast, cost of restaurants and hotels increased by 0.3 percent.

When compared with January 2015, inflation rate fell by 0.3 percent, following a 0.4 percent drop last month. The decrease is mainly attributed to declines in prices of gasoline and diesel and lower food cost.

Transports cost dropped by 1 percent due to cheaper gasoline and diesel prices (-5.2 percent and – 4.7 percent, respectively). Food prices declined by 0.7 percent due to promotion sales. Lower prices of package tours, books and brochures, articles winter sports and television led to a 0.6 percent decline in recreation and culture.

Prices of housing and energy increased slightly by 0.1 percent in February over the previous month as cost of housing rents become more expensive (+0.2 percent). Prices were unchanged for restaurants and hotels.

Switzerland Falls Deeper Into Deflation

Statistics Swiss l Carolina Cunha l carolina.cunha@tradingeconomics.com
3/6/2015 10:52:30 AM