Swiss CPI dropped -0.1% mom in December, below expectation of 0.0% mom. The monthly decrease can be explained by several factors including falling prices for international package holidays. Medicines also recorded a price decrease, as did fruiting vegetables. In contrast, prices for heating oil and air transport increased.
Annually, CPI dropped further to -0.8% yoy, below expectation of -0.7% yoy. This decrease is due in particular to lower prices for international package holidays, petroleum products and for air transport. In contrast, prices for housing rentals and new cars increased. Prices for domestic products remained stable on average, those for imported products decreased by 2.9%.
