Swiss Inflation Slowed Fourth Straight Month in August

Swiss inflation slowed for a fourth straight month in August, giving the central bank room to keep borrowing costs near zero.

Consumer prices increased 0.3 percent from a year earlier after rising 0.4 percent in July, the Federal Statistics Office in Neuchatel said. That’s the lowest since December 2009. In the month, consumer prices remained unchanged.

Swiss prices may be pushed lower as a stronger Swiss franc makes imports more affordable just as a recovery is losing steam. Manufacturing growth slowed in August and leading indicators fell. Swiss central bank President Philipp Hildebrand said last month the economy will probably expand at a slightly weaker” pace in the second half and in 2011.

Prices of imported consumer goods dropped 0.4 percent in the year and 0.1 percent in the month, today’s report showed. Prices, excluding volatile goods such as energy, rose 0.1 percent in the year and fell 0.1 percent from July.

Swiss Inflation Slowed Fourth Straight Month in August, Bloomberg
9/5/2010 10:25:03 PM