Swiss consumer price inflation picked up slightly more than expected in December, reducing the likelihood of renewed currency interventions by the central bank.
This content was published on
1 minute
swissinfo.ch and agencies
Year-on-year, the inflation rate rose 0.5 per cent, compared with December 2009, and was unchanged from November, the Federal Statistics Office said on Thursday. The average inflation rate for 2010 was 0.7 per cent.
Core inflation, which strips out volatile price components such as food and fuel, rose a notch to 0.1 per cent.
Switzerland emerged from recession in the third quarter of 2009, and recent indicators have pointed towards further recovery.
Thomas Jordan, a vice-president of the Swiss National Bank (SNB), said earlier this week that it was still too early to raise interest rates, though prolonging loose policy was not without dangers.
Most economists expect a small interest rate increase in the second half of 2011. In March, the SNB cut its three-month Libor (London Interbank Offered Rate) target to 0.25 per cent and intervened in currency markets to fight the worst recession in decades.
Popular Stories
More
Foreign affairs
Go to war or stay put? Ukrainian men in Switzerland face fresh dilemmas
Should raw milk sales be banned or should consumers decide?
Swiss food regulations do not allow raw milk to be sold for direct consumption. However, a loophole allows 400 raw milk vending machines to do just that.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Swiss economy finds competitive advantage
This content was published on
But the growing strength of Asian economies coupled with structural weaknesses in Europe have helped Switzerland gain a position of relative competitive strength over neighbours. Swiss exporters still face problems associated with the strengthening franc and a weakening of their most important market – the European Union. But a steady diversification of exports away from…
This content was published on
Swiss exporters are already facing the double whammy of a franc strengthening against the euro and the dollar. And there are signs of more trouble as the United States, China, Japan and other nations signal further currency weakening. Recent weeks have seen a spate of statements from around the world indicating future rounds of quantitative…
This content was published on
The franc has appreciated by ten per cent against the euro since the start of 2010, much to the disquiet of unions and exporters. But economists say the impact of a strong franc on Swiss firms is not black or white. At the beginning of September the Swiss logistics firm Stöcklin, based in Dornach, south…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.