Consumer prices fell 0.2 percent in September, led by declines in package tours abroad, hotel stays, and air travel which offset increases for home and office furniture, clothing and shoes. Compared to a year ago, prices rose 0.2 percent. Excluding fresh and seasonal foods, energy, and fuel, core inflation fell 0.2 percent on the month, and held steady at 0.7 percent on the year.

Prices for domestic goods fell 0.3 percent on the month and rose 0.6 percent on the year. Imported goods fell 0.1 percent on the month and declined 0.9 percent on the year showing how the strong Swiss franc is at keeping inflation at bay.

Consumers paid 0.4 percent less for food and alcoholic beverages in September, with prices falling 0.8 percent on the year.

Rental costs which make up around 15 percent of the CPI showed no change in September but rose 1.9 percent on the year.

Goods inflation was down 0.1 percent in September and declined 1.6 percent from a year ago with a monthly 0.7 percent rise in semi-durable goods offset by a 0.3 percent drop in non-durables. Durable goods rose 0.1 percent on the month. Services prices were down 0.3 percent in September but rose 1.4 percent on the year.

Clearly there are no inflationary pressures in Switzerland at the moment.

The consumer price index (CPI) is an average measure of the level of the prices of goods and services bought for the purpose of consumption by Swiss households. Monthly and annual changes in the CPI provide widely used measures of inflation. The policy target measure for the Swiss National Bank (SNB), the annual CPI rate can be distorted by swings in prices amongst the more volatile subsectors and the CPI excluding fresh food and energy is used as a better guide to underlying short-term trends. Although not a member of the Eurozone, a harmonized index of consumer prices (HICP), measured according to Eurostat's procedures, is also published alongside the CPI.

The consumer price index is the most widely followed indicator of inflation. An investor who understands how inflation influences the markets will benefit over those investors that do not understand the impact. Inflation is an increase in the overall prices of goods and services. The relationship between inflation and interest rates is the key to understanding how indicators such as the CPI influence the markets- and your investments. Inflation (along with various risks) basically explains how interest rates are set on everything from loans to notes and bonds. As the rate of inflation changes and as expectations on inflation change, the markets adjust interest rates. The effect ripples across stocks, bonds, commodities, and your portfolio, often in a dramatic fashion. By tracking inflation, whether high or low, rising or falling, investors can anticipate how different types of investments will perform. Over the long run, the bond market will rally (fall) when increases in the CPI are small (large). The equity market rallies with the bond market because low inflation promises low interest rates and is good for profits.