Switzerland is becoming accustomed to deflation. The Swiss consumer price index fell by 0.6% in July 2015 and the index is now 1.3% lower than in July 2014 and at its lowest level since October 2007.
July 2015 deflation was largely driven by the falling price of imports – driven by a strong Swiss franc, summer sales – clothing and shoes in particular, and falling diesel and heating oil prices. Year on year the price of imported goods was down 5.3%, clothing and shoes down 8.3% and petroleum products 16.8% lower.
These price declines outstripped monthly rises in the price of petrol, alcohol, tobacco, fruit and vegetables.
The price of health, public services, rent and education were largely unchanged in July. Over the year health saw a small decline of 0.5%, while rent and education were up 1.2% and public service prices flat.
Full OFS report (in French)