Swiss Inflation Rate at Over 2-1/2 Year-Low
Switzerland's annual inflation rate declined to 0.1 percent in September 2019 from 0.3 percent in the previous month, lower than market expectations of 0.3 percent. It was the lowest inflation since December 2016, well below the central bank's target of just below 2 percent as the franc surged to 2-year high against the Euro in the beginning of the month. Both transport and food prices fell, while housing inflation was steady, and health prices continued to drop.
10/2/2019 3:28:04 PM
Main upward pressure came from: housing and energy (0.3 percent, the same pace as in August); restaurants and hotels (0.7 percent, unchanged from a month earlier); and other goods and services (1.1 percent vs 0.9 percent).
On the other hand, prices declined for: food and non-alcoholic beverages (-0.3 percent vs 0.3 percent) and transport (-0.2 percent vs 0.4 percent). Meantime, cost continued to drop for healthcare (-0.6 percent, the same pace as in August) and recreation and culture (-1.2 percent vs -0.8 percent).
Annual core inflation, which strips out volatile price components like fresh and seasonal products, energy and fuels, stood at 0.4 percent in September, unchanged from the previous month's five-month low.
On a monthly basis, consumer prices edged down 0.1 percent in September, after flat reading in August and missing market consensus of a 0.1 percent gain. Airfares, as well as prices for international package holidays, hotel accommodation, and fuels declined; while prices for clothing, and heating oil increased.