Switzerland's annual inflation fell to 0.3 percent in July 2019, the lowest since July 2017, from 0.6 percent in the previous month and below market expectations of 0.5 percent. Transport and restaurant & hotels inflation rates slowed while food and health prices fell.
Inflation eased for transportation (0.4 percent vs 1.0 percent in June); restaurants and hotels (0.6 percent vs 0.7 percent); clothing and footwear (2.2 percent vs 3.5 percent); and miscellaneous goods and services (0.6 percent vs 0.7 percent). In addition, prices fell for: food and non-alcoholic beverages (-0.4 percent vs 0.1 percent), the first yearly decline in food prices since February 2018; healthcare (-0.4 percent vs 0.1 percent); and recreation and culture (-0.8 percent after a flat reading in May)
On the other hand, inflation accelerated for both housing and energy (0.4 percent vs 0.3 percent) and household equipment and maintenance (3.2 percent vs 1.9 percent),
Annual core inflation, which strips out volatile price components like food, beverages, tobacco, seasonal products, energy and fuel, declined to 0.4 percent in July, the lowest since February, from 0.7 percent in the prior month.
On a monthly basis, consumer prices dropped 0.5 percent in July, after being unchanged in June and compared to market consensus of a 0.3 percent fall. This was the biggest monthly decline in consumer prices since July 2015, due to falling prices for clothing and footwear amid seasonal sales, as well as lower cost for international package holidays and air transport. In contrast, prices for heating oil and berries increased.
8/2/2019 11:01:01 AM