Inflation falls but is still marked by high oil prices

Annual inflation in Switzerland fell in October to 1.9 per cent from 2.3 per cent in September, according to figures published on Tuesday.

The Federal Statistical Office in Neuchâtel reported that consumer prices in October went down by 0.3 per cent from the previous month.

However, the Office said that without the effect of high fuel price increases, annual inflation in October would have been only 0.4 per cent.

It added that it expects average inflation this year of 1.8 per cent, rising to 1.9 per cent in 2001. Excluding rises in oil prices, average inflation this year would likely have been only 0.6 per cent.

The decline in consumer prices in October is largely due to lower figures for housing and energy. The Office said heating oil prices went down by 7.5 per cent over the previous month, although it pointed out that this was still 62 per cent above last year’s level.

swissinfo with agencies