Switzerland Deflation Slows Further to 0.1% in August

Consumer prices in Switzerland edged down 0.1 percent year-on-year in August of 2016, following a 0.2 percent drop in the previous month and in line with market expectations. It is the 24th straight month of deflation although prices fell the least since November of 2014. Cost fell less for housing and utilities and grew faster for food and clothing and footwear.

Year-on-year, prices fell at a slower pace for housing and energy (- 0.1 percent compared to -0.2 percent in July) and miscellaneous goods and services (-1.6 percent compared to -2 percent) but dropped faster for health (-0.5 percent compared to -0.2 percent) and transport (-2.9 percent compared to -2.1 percent).

In contrast, prices rose for restaurants and hotels (0.1 percent compared to -0.4 percent); food and non-alcoholic beverages (1.3 percent compared to 1.2 percent); recreation and culture (2 percent compared to 2.9 percent) and clothing and footwear (3.3 percent compared to 0.7 percent). 

On a monthly basis, consumer prices also edged down 0.1 percent, following a 0.4 percent decline in July. The decrease was mainly driven by lower prices for stationary hospital services, package tours, air transport and petroleum products while prices of hotel nights and clothing increased.

Switzerland Deflation Slows Further to 0.1% in August

Swiss Federal Statistical Office | Joana Taborda | joana.taborda@tradingeconomics.com
9/6/2016 9:08:06 AM