Data released by the Federal Statistical Office (FSO) showed that producer and import prices rose by 0.1% in March, as expected, after a similar increase in February. The FSO said the March change was due to lower prices for petroleum products and natural gas
In annual terms, producer and import prices fell by 2.1%, accelerating compared to February (-2%), and recording the 11th consecutive decline. Consensus estimates suggested a decrease of 1.2%. Producer prices decreased by 1.1% per annum after falling by 0.3% per annum in February, while import costs decreased by 5.4% per annum, as in February.
The report also showed that prices for manufactured products for the domestic market increased by 0.1% over the month and remained unchanged compared to March 2023. Meanwhile, prices for manufactured products for export increased by 0.2% m/m and fell by 2.2% per annum.
According to official data, in March, consumer inflation in Switzerland fell to the lowest level since September 2021, amounting to 1% per annum. It was the 10th month running that inflation has come within the Swiss National Bank's 0-2% target range. The SNB in March became the first major central bank to trim borrowing costs in the current cycle, reducing its key rate to 1.5%.