Switzerland Posts 1st Month of Deflation in 3 Years
Switzerland's consumer prices declined 0.3 percent year-on-year in October 2019, after a 0.1 percent rise in the previous month, missing market expectations of a flat reading. It was the first month of deflation since November 2016, as housing prices fell, while both transport and food prices decreased faster, and health prices continued to drop.
11/1/2019 10:32:26 AM
Prices declined for housing and energy (-0.3 vs 0.3 percent in September), while prices fell faster for both food and non-alcoholic beverages (-1.2 percent vs -0.3 percent) and transport (-1.0 percent vs -0.2 percent). Meantime, cost continued to drop for healthcare (-0.6 percent, the same as in September) and recreation and culture (-1.2 percent, unchanged from the prior month).
On the other hand, main upward pressure came from restaurants and hotels (0.5 percent vs 0.7 percent); and other goods and services (1.3 percent vs 1.1 percent).
Annual core inflation which strips out volatile price components like fresh and seasonal products, energy and fuels went down to 0.2 percent in October, the lowest since November last year, from 0.4 percent in the previous month.
On a monthly basis, consumer prices dropped 0.2 percent in October, after decreasing by 0.1 percent in September and missing market consensus of a flat reading. Airfares, as well as prices for international package holidays, hotel accommodation, and vegetables and pasta declined; while prices for clothing, and shoes increased.