Consumer prices in line with forecasts

Swiss consumer prices fell by one per cent in June compared with the same month last year but were 0.2 per cent higher than in May.

This content was published on July 3, 2009 - 10:24

Announcing the figures on Friday, the Federal Statistics Office said the increase of the consumer price index (CPI) in June was due to the rise in oil prices, but the start of the sales in clothing had a dampening effect.

The forecast was in line with economic analysts' forecasts.

"As expected, June CPI saw some upward pressure thanks to higher energy costs and in turn higher prices for items like transport and utilities," said Saara Tuuli at the financial market analyst company 4Cast.

"Like last year, summer sales appear to have started early again this year given the weak demand environment as seen elsewhere in Europe."

David Market at the Zurich cantonal bank said the figures had come as no surprise.

"Core inflation is quite stable and that is good news for the Swiss National Bank, which does not have to do anything now for several months," he said.

Switzerland's central bank most recently cut its key interest rate in March. The target range for the three-month Libor (London Interbank Offered Rate) was lowered by 25 basis points to 0-0.75 per cent. and agencies

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