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Signs Of Inflation In Switzerland

James Boston
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Switzerland has reported a very minor, but nonetheless welcome, uptick in it’s inflation situation this morning. The Consumer Price Index (CPI) has been recorded as growing by 0.1% when measured on a year on year basis, this follows several month’s where the rate of price growth was flat and indeed there was no expectation for any change to this situation in these latest figures. The month on month change however has come in at 0% growth, the positive in this situation is that it is up from -0.4% experienced in July, it also beat the market expectation for a further contraction of -0.1% in general prices.

The Swiss consumer sector has displayed a pull back according to the Retail Sales numbers for July also released this morning. Markets were caught by surprise when it was reported that Sales fell by -3.4% from June to July, particularly in light of the 2.9% growth experienced between May and June, there was an expectation that the numbers would be softer but only to the tune of around 0.1% expansion. The year on year Retail Sales number has also been hit accordingly, this is currently showing a contraction of -0.6% and represents a reversal from the previous months revised 3.3% growth, average estimates predicted a reading of 2.6% expansion in this metric for July.

Adding to Switzerland’s economic concerns this morning is a reported minor uptick in the Unemployment Rate. The rate for August has risen to 3.0% from just 2.9% the month before when measured on a non seasonally adjusted basis, this slight increase was not unexpected and by all accounts Switzerland is still enjoying a full employment situation. The seasonally adjusted Unemployment number remained at the previously recorded 3.2% in August, market analysts had predicted this figure not to change on the month.

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