Data released by the Federal Statistical Office (FSO) showed that producer and import prices rose by 0.2% in August after being unchanged in July. Economists had expected a 0.1% increase. The FSO said the rising prices were seen in particular for pharmaceutical products. Organic products of the chemical industry and raw milk also became more expensive. In contrast, falling prices were seen for petroleum products, electricity (for large-scale consumers), dyes and pigments as well as non-ferrous metal products.
In annual terms, producer and import prices fell by 1.2%, slowing compared to July (-1.7%), and recording the 16th consecutive decline. Consensus estimates suggested a decrease of 1.4%. Producer prices decreased by 0.2% per annum, while import costs decreased by 3.4% per annum.
The report also showed that prices for manufactured products for the domestic market fell by 0.3% over the month and by 0.6% compared to August 2023. Meanwhile, prices for manufactured products for export increased by 1.4% m/m and fell by 0.9% per annum.
According to official data, the annual inflation rate in Switzerland eased to 1.1% in August from 1.3% in July. This marked the lowest level since March. On a monthly basis, the CPI was flat, following a 0.2% decline in July. The core rate, which excludes volatile items such as unprocessed food and energy, remained steady at 1.1% year-on-year in August.