Switzerland Annual Inflation Down to -0.4% in November


According to the Federal Statistical Office, the Swiss index of consumer prices declined 0.3% in November of 2012 compared to the previous month. On an annual basis, inflation was -0.4%.

The decline in the index of consumer prices in November 2012 was primarily due to declines in the price of fuel and oil, housing rents and food. Price indices also fell for transports (-1.0%), food and non-alcoholic beverages (-0.8%), communications (-0.5%), housing and energy (-0.4%), clothing and footwear (-0.4%), household equipment and routine maintenance (-0.3%) and hotels and restaurants (-0.1%). However, there was an increase on the price index of alcoholic beverages and tobacco (0.6%), recreation and culture (0.2%) and other goods and services (0.2%). The change in the price index for health was recorded at 0%.

According to the Federal Statistical Office, the prices of domestic products fell by 0.1% compared to the previous month. Of those, the imported goods fell by 0.9%. On an annual basis, the prices of domestic products rose 0.1%, while those of imported products were down 1.6%. The decline in the index of food and non-alcoholic beverages is largely due to lower prices for vegetables (including cucumbers, courgettes and aubergines), sausages, citrus fruits, powdered soups, pasta, chocolate and cheese. After several decreases in the previous months, it was recorded a price increase for pastries, bakeries and other grain products.
  
The index of communications declined primarily due to lower prices for communications over the mobile network. In housing and energy, the index decline is explained by lower oil prices (-4.1%; reference days: 2 and 15 November) and the Rental Housing (-0.2%). The clothing and footwear group reported a lower index due to promotional offers practiced mainly on women's shoes.
  
In household equipment and routine maintenance (-0.3%), prices fell for the furniture room, bed linen and household textiles, household appliances and large laundry products and cleaning. The price declines in hotel stays in several regions reduced slightly the index for hotels and restaurants.
  
After the promotional sales of wine and beer in the previous month, the index of alcoholic beverages and tobacco showed again an increase. The index for other goods and services also increased, mainly due to promotional offers practiced in the previous month on beauty products and cosmetics.

FSO | Nuno Fontes | nuno@tradingeconomics.com
12/11/2012 5:25:56 PM