Switzerland's annual inflation rate eased to 0.7 percent in December 2018 from 0.9 percent in the previous month, missing market expectations of 0.8 percent. It was the lowest rate since February, as prices of housing and transportation rose at a slower pace while healthcare costs continued to fall.
Year-on-year, prices rose at softer pace for housing and energy (1.0 percentvs 1.7 percent in November), transport (1.8 percent vs 3.0 percent), restaurant and hotels (0.2 percent vs 0.5 percent), and miscellaneous goods and services (0.5 percent vs 0.9 percent). In addition, healthcare prices continued to fall (-0.7 percent, the same as in November). On the other hand, inflation picked up for food and non-alcoholic beverages (1.5 percent vs 1.3 percent) while recreation and culture prices rebounded slightly (0.1 percent vs -0.2 percent).
Annual core inflation, which strips out volatile price components like food, beverages, tobacco, seasonal products, energy and fuel, edged up to 0.3 percent in December from 0.2 percent in the prior month.
On a monthly basis, consumer prices declined 0.3 percent, the same pace as in November and compared with market consensus of a 0.1 percent drop, mainly due to falling prices for heating oil and fuel. In contrast, prices for overnight stays in hotels and new cars increased.
The average annual inflation rose to 0.9 percent in 2018 from 0.5 percent in 2017 due in particular to higher prices for petroleum products and increased housing rentals.
Swiss Federal Statistical Office | Chusnul Ch Manan | chusnul@tradingeconomics.com
1/9/2019 10:52:29 AM