Swiss Annual Inflation Rate at 7-Month Low in November

The annual inflation rate in Switzerland fell to 0.9 percent in November of 2018 from 1.1 percent in the previous month and below market expectations of 1.0 percent. It was the lowest inflation rate since April, mainly due to a slowdown in prices of food and non-alcoholic beverages and transport.

Year-on-year, prices eased for food and non-alcoholic beverages (1.3 percent compared to 1.7 percent in October); transport (3.0 percent compared to 3.4 percent); restaurant and hotels (0.5 pecent compared to 0.7 percent); and alcoholic beverages and tobacco (0.3 percent compared to 1.7 percent). Also, cost of recreation and culture dropped (-0.2 percent compared to 1.6 percent) and prices of clothing and footwear fell further (-0.8 percent compared to -0.4 percent).

Meanwhile, prices advanced at a faster pace for housing and electricity (1.7 percent compared to 1.6 percent); miscellaneous goods and services (0.9 percent compared to 0.1 percent); household equipment and maintenance (0.5 percent compared to 0.4 percent) and communication (1.7 percent compared to 0.4 percent). Additonally, inflation was steady for education (0.6 percent, the same as in October) and cost of health continued to decline (-0.7 percent, the same as in October).

Annual core inflation, which strips out volatile price components like food, beverages, tobacco, seasonal products, energy and fuel, rose 0.2 percent, following a 0.4 percent increase in the prior month.

On a monthly basis, consumer prices went down 0.3 percent, after rising 0.2 percent in October and compared with market consensus of a 0.1 percent fall. Cost of international package holidays and ovbernight stays in hotels decreased while prices of diesel and bedroom furniture advanced.

Swiss Annual Inflation Rate at 7-Month Low in November

Swiss Federal Statistical Office | Stefanie Moya |
12/4/2018 8:53:53 AM