Swiss consumer prices fall most in 56 years

[ZURICH] Swiss consumer prices fell in August by the most in 56 years, the strongest indication yet of the pricing pressure from Switzerland's strong currency and low oil prices.

Consumer prices fell 1.4 per cent from a year ago, the Federal Statistics Office (FSO) said on Friday, equaling the steepest year-on-year drop since 1959. Prices were 0.2 per cent lower compared with the previous month.

August marked the tenth straight month prices have fallen year on year, a trend which started in late 2014 but was exacerbated from January when the Swiss National Bank abruptly removed its cap on the franc, set at 1.20 per euro.

The franc's subsequent surge has lowered the price of imports from the euro zone. In August the cost of overall imports fell by 5.5 per cent year on year, the FSO said.

Cheaper oil has also kept a lid on prices.

REUTERS