Prices undergo greatest decline in 50 years
Consumer prices in Switzerland have weathered the biggest monthly drop in 50 years, the Federal Statistics Office announced on Friday.
The overall decline of one per cent for goods bought in May 2009 was more than analysts had expected and has not been matched since September 1959.
While energy prices in May of this year actually increased 1.8 per cent over the previous month, prices for food and non-alcoholic beverages dropped 0.2 per cent.
Household goods slipped 0.2 per cent. Prices at restaurants, hotels and for cultural and recreational activities also dropped by 0.1 per cent, the office said.
Alcoholic drinks, tobacco, health care products and telecommunication costs remained unchanged.
Officials say a drop in oil prices during the last year has contributed significantly to lower prices. The cost of heating oil in May was 48.1 per cent less than the previous year.
Economists say the slip is not a result of deflation as core inflation rose one per cent in May compared with the same period last year.
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