Switzerland in MoM deflation due to cheaper energy and clothes

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George Dorgan
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Slowing energy prices (MoM -4.2%) and seasonal effects for clothes and footwear (MoM -2.8%) drove Switzerland in a slight deflation on monthly basis again.

The Consumer Price Index (source) fell by 0.3% MoM.  The CPI ex Energy fell by 0.1% MoM. The YoY remains in deflation (-3.9%), the price change since december 2011 is still +0.20%.

June CPI Switzerland - Click to enlarge

May CPI Switzerland - Click to enlarge

Energy prices fell more strongly than the USD increased against the Swiss franc and the YoY value remained in a strong contraction. For this reason the FX pass-through effect we expected, has not take place yet (more details on the May data to the right).

The German CPI, an index which has a similar CPI basket and a pegged currency is supposed to fall by 0.1% MoM.

About George Dorgan

George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on SeekingAlpha.com and on this blog. Several Swiss and international financial advisors support the site. These firms aim to deliver independent advice from the often misleading mainstream of banks and asset managers. George is FinTech entrepreneur, financial author and alternative economist. He speak seven languages fluently.

My articlesMy siteAbout meMy books
Follow on:LinkedINTwitterSeeking AlphaCFA SocietyEconomicBlogs