Swiss prices down 0.8 percent in October

6th November 2009, Comments 0 comments

Swiss consumer prices fell 0.8 percent year-on-year in October, as a deflationary trend which set in earlier this year eased slightly.

Geneva – Swiss consumer prices fell 0.8 percent year-on-year in October, official data showed Thursday, as a deflationary trend which set in earlier this year eased slightly.

Prices had fallen by 0.9 percent a month earlier, according to the Swiss Federal Statistics Office, after reaching a 50 year low of minus 1.2 percent in July.

On a monthly basis, consumer prices rose by 0.6 percent in October, largely due to higher clothing and shoe prices amid "a return to regular prices after sales."

With interest rates wedged at a historic low point since March, the Swiss National Bank expects inflation to reach an average of minus 0.5 percent this year as the economic crisis bites, edging into positive territory with an average of 0.6 percent in 2010.

Swiss authorities in September raised their growth forecast for 2010, saying that the economy would expand 0.4 percent rather than contract 0.4 percent as it had earlier predicted.

AFP / Expatica

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