Swiss producer prices flat in March

Producer and imports prices in Switzerland remained flat in March from a month earlier, and fell slightly on a yearly basis, reflecting manufacturers' concerns about future economic performance of the country. According to the Federal Statistics, the prices of domestically produced and imported goods stagnated last month, compared with a 0.1% gain in February, meeting analysts' expectations. On a yearly basis, prices were 0.3% down, compared to a 0.1% growth a month earlier. At the same time, a gauge of producer prices, which shows the price development of domestically produced products, increased 0.3%, while a measure of imported prices dropped 1.5%. The latest data are adding to concerns that despite modest growth, manufacturers are showing unwillingness to increase their spending.

"The inflation path is being shifted down, but overall the picture stays the same," said Alexander Koch, an economist at UniCredit. "Since the cap was set in 2011, their stance has been relatively unchanged."

"There is no deflation though there is still a disinflationary tendency in some of the CPI components. It means there is still time before we will see any action from the SNB," said ZKB economist David Marmet.