22.02.2016 09:15 – FSO, Prices (0353-1601-60)
Comments by George Dorgan
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The Producer Price Index (PPI) or officially named "Producer and Import Price Index" describes the changes in prices for producers and importers. For us it is interesting because it is used in the formula for the Real Effective Exchange Rate. When producers and importers profit on lower price changes when compared to other countries, then the Swiss Franc reduces its overvaluation. The Swiss PPI values of -6% in 2015 (see below), compared to -3% in Europe or -1% in the U.S., diminished the overvaluation. See more in Is the Swiss Franc overvalued?.
Producer and Import Price Index in January 2016
Neuchâtel, 22.02.2016 (FSO) – The Producer and Import Price Index fell in January 2016 by 0.4% compared with the previous month, reaching 99.6 points (base December 2015 = 100).
Whereas the Producer Price Index declined by 0.1%, the Import Price Index fell by 0.8%. The decline is due largely to falling prices for petroleum products. Compared with January 2015, the price level of the whole range of domestic and imported products fell by 5.3%. These are the findings of the Federal Statistical Office (FSO).
| Total Producer and Import Price Index | %basket | change YoY |
|---|---|---|
| Producer and Import Prices | 100% | -5.3% |
| – of which good produced in Switzerland | 67.5% | -3.7% |
| – of which imported goods | 32.5% | -8.8% |
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The Swiss Federal Statistics Office publishes information on the situation and developments in Switzerland in a multitude of fields and plays a part in enabling comparisons at an internal level.
Tags: Switzerland inflation,Switzerland Producer Price Index
