Inflation at a 50-year low
Neuchatel, Switzerland (GenevaLunch) – Inflation in Switzerland reached its lowest point in 50 years which according to experts leaves the Confederation at risk for potential deflation.
Switzerland’s Federal Statistical Office announced the consumer price index or CPI rose 0.3% from a year ago after recording zero growth in November. The December growth was the first year-on-year increase since February. Economists had forecast a 0.5% increase for December.
In 2009 the price for Swiss products grew an average of 1.2% but dropped 4.7% for imports.
In 2008 the annual inflation rate was 2.4%, the highest in the last five years.
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News story, GenevaLunch, 7 January 2010.
Filed under: Business
Tags: Business and finance, disinflation, inflation, Swiss economy, Swiss news
July 26th, 2010 at 12:53 am
Switzerland has traditionally been the land of fiscal conservatism resulting in low inflation rates than the rest of the world and increasing value of the Swiss Franc. As the U.S. Dollar and the Euro and other major currencies inflate away their value the Franc has retained its purchasing power and appreciated against other currencies. Of course there have been periods of declining value for the Franc but they have usually been brief.