"Thanks to the minimum exchange rate the franc was stable in 2012, and since the start of 2013 has lost some of its strength"
- Analysts at Credit Suisse Group AG
Producer and imports price in Switzerland gained less than initially was estimated in January, indicating weak demand for goods and raw materials by manufacturers. According to the Federal Statistics Office, a gauge of prices of products ranging from factory to farm goods as well as imports, increased 0.8% from a year earlier after climbing an annual 1% in December. On a monthly basis, prices fell by 0.1%, after a 0.1% gain in the preceding month, well below analysts' expectations, which called for a 0.2% reading. Import costs declined 0.3% in the month and 0.1% from a year earlier, report also showed. Producer prices dropped 0.1% in the month and advanced 1.2% from a year earlier.
"Thanks to the minimum exchange rate the franc was stable in 2012, and since the start of 2013 has lost some of its strength," said analysts at Credit Suisse Group AG, which co-compiled the index. "Simultaneously with the depreciation, industry appears to have finally passed the trough," they said.
"We've seen a net decline but, of course, the month had two working days less," said Alessandro Bee, an economist at Sarasin. "Adjusted for this, there was still a drop but not as strong. This reflects the recession in Europe."
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