Deflation fears mount as Swiss prices plummet again
Swiss import and producer prices again declined sharply, while Swiss yoy inflation dropped by -5.2%.
According to the data, provided by the Swiss Federal Statistical Office, the index on producer and index prices declined by 2.1 % compared to the previous month.
The decline of price levels was particularly pronounced in machine, electronics, optical and healthcare products as well as cars.
The decline of import and producer prices is largely caused by the abandonment of the fixed exchange rate of the franc against the euro which caused a sharp appreciation of the franc.
Yet while Swiss consumer prices have equally declined throughout April, prices of services increased, representing a counteracting factor to deflation threats.