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Swiss Producer and Import Price Index in June 2020: -3.5 percent YoY, +0.5 percent MoM

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. In 2017, however, producer prices are rising again – in both Europe and Switzerland. See more in Is the Swiss Franc overvalued?

14.07.2020 – The Producer and Import Price Index rose in June 2020 by 0.5% compared with the previous month, reaching 98.1 points (December 2015 = 100). The rise is due in particular to higher prices for petroleum products as well as petroleum and natural gas. Compared with June 2019, the price level of the whole range of domestic and imported products fell by 3.5%. These are the results of the Federal Statistical Office (FSO).

The Producer Price index registered higher prices compared with the previous month, particularly for petroleum products. Cattle for meat also became more expensive. In contrast, decreasing prices were observed for scrap.

Petroleum products, petroleum and natural gas were responsible in particular for the increase in the Import Price index compared with May 2020. Higher prices were also seen for non-ferrous metals and products made therefrom as well as for passenger cars. In contrast, fresh vegetables, wine and steel became cheaper.

Switzerland Producer Price Index (PPI) YoY, June 2020

Switzerland Producer Price Index (PPI) YoY, June 2020

Source: - Click to enlarge

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George Dorgan
George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on 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.
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