Swiss Deflation Slows to 20-Month Low in July


Swiss consumer prices declined by 0.2 percent on the year in July 2016, compared to 0.4 percent drop in the previous month and beating market expectations of 0.3 percent fall. It was the lowest drop since November 2014, as cost of food and recreation and culture rose at a faster pace while downward pressure came mostly from housing, transportation, health, furnishings and household equipment. On a monthly basis, consumer prices went down 0.4 percent.

Compared with July 2015, prices of housing and utilities fell 0.2 percent (the same pace as in the previous month); cost of health declined by 0.2 percent (from -0.3 percent in June) and transport prices went down 2.1 percent (from -2.7 percent). Additional downward pressure came from: restaurants and hotels (-0.4 percent from -0.7 percent); miscellaneous goods and services (-2.0 percent from -1.7 percent); and furnishings and household equipment (-2.2 percent from -3.0 percent). By contrast, prices increased for food and non-alcoholic beverages (+1.2 percent from +0.6 percent); recreation and culture (+2.9 percent from +2.3 percent) and clothing and footwear (+0.7 percent). 

On a monthly basis, consumer prices went down 0.4 percent, following 0.1 percent rise in the previous month, mainly due to lower prices of clothing and footwear (-8.9 percent); housing and utilities (-0.1 percent); furnishings and household equipment (-0.6 percent); transport (-0.3 percent) while food prices edged up 0.1 percent. 

Swiss Deflation Slows to 20-Month Low in July


Swiss Federal Statistical Office | Yekaterina Guchshina | yekaterina@tradingeconomics.com
8/8/2016 1:24:09 PM