| Swiss producer and import prices: no pipeline inflation pressures in sight |
| 13.10.10 14:04 | |
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Swiss combined producer and import prices declined by 0.1% m/m in September, thus surprising on the downside (consensus was for a 0.1% m/m rise), with the rolling quarterly inflation rate decelerating further to -0.6 % q/q (down from -0.3% q/q in August). While producer prices were almost flat in September, import prices declined by 0.3% m/m, following two consecutive 0.6 pp m/m declines in June and July. Lower import prices for energy and food were yet again the main drivers of import prices in September. The sustained strength of the Swiss Franc in recent months – particularly against the US Dollar and Euro but also on a trade-weighted basis – clearly has dampened Swiss import and producer price inflation, thus suggesting that consumer price inflation should remain contained in the coming months. In fact, the September CPI inflation rate was the lowest in a year (0.3% y/y). Frank Engels wrote in a Barclays Capital Research report. |
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