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?
| 17.05.2021 – The Producer and Import Price Index increased in April 2021 by 0.7% compared with the previous month, reaching 101.6 points (December 2020 = 100). Higher prices were seen in particular for computer, electronic and optical products, machinery, basic metals, semi-finished metal products and metal products. Compared with April 2020, the price level of the whole range of domestic and imported products rose by 1.8%. These are the results from the Federal Statistical Office (FSO).
In particular, higher prices for watches, machinery, metal products, basic metals and semi-finished metal products were responsible for the growth in the producer price index compared with the previous month. Electrical equipment, medical and dental instruments and supplies, meat and meat products as well as slaughter pigs also became more expensive. The import price index showed price increases compared with March 2021 in particular for basic metals, semi-finished metal products, machinery, metal products, computer, electronic and optical products, fuels and electrical equipment. The same applied for furniture, medical and dental instruments and supplies, vegetables, melons and potatoes. In contrast, petroleum and natural gas became cheaper. |
Switzerland Producer Price Index (PPI) YoY, April 2021(see more posts on Switzerland Producer Price Index, ) Source: investing.com - Click to enlarge |
Download press release Producer and Import Price Index rose by 0.7% in April
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