"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
Consumer prices in Switzerland dropped for the third consecutive month in January, even as the Franc declined against the Euro, the Federal Statistics Office said Tuesday. Switzerland consumer prices fell 0.3% in January from a year ago, following a 0.4% drop in December, meeting analysts' expectations. On a monthly basis, consumer prices were 0.3% lower in December, after a 0.2% drop in a previous month. Prices within the country continued to fall even after the Swiss National Bank imposed a ceiling of 1.20 versus the Euro in September 2011 to fight deflation threats. The report also showed that consumer prices are expected to stand at 0.2% in 2013 and 2014, while the SNB projected a 0.1% deflation in 2013.
"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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