Swiss inflation falls to 50-year low

6th April 2009, Comments 0 comments

The Federal Statistics Office reports consumer price deflation due to lower oil prices.

GENEVA - Swiss consumer prices fell in March as inflation turned negative and reached a 50-year low at minus 0.4 percent compared to one year ago, official statistics showed Friday.

Prices also fell by 0.3 percent compared to February, the Federal Statistics Office said in a statement.

The inflation rate recovered slightly in February to 0.2 percent, after falling from a 3.1 percent peak in July 2008 to 0.1 percent in January 2009.

The trend of falling prices was largely sustained by imported goods and oil prices, the Statistics Office said.

Switzerland's central bank warned of the risk of sustained deflation after repeatedly cutting its inflation forecast in recent months.

Inflation is now expected to reach an average of minus 0.5 percent in 2009 due to the economic crisis, and close to zero in 2010 and 2011, according to the Swiss National Bank.

AFP / Expatica

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