Swiss producer and import price inflation slightly declines in December

Inflation of producer and import price in Switzerland declined in the last month of 2012, beat the expectation of economists though, when it  fell to 1.0% in December from a November's 1.2%, the Federal Statistical Office reported on Thursday. On a monthly basis, the producer and import prices index recorded a modest gain of 0.1% following an unchanged November.

"Should the risk of an economic drop increase—because of a strong fall in foreign demand and the strong franc—then there is a serious risk for a deflationary development given already falling consumer prices," said the SNB board member Jean-Pierre Danthine.