| Actual | Previous | |
| Month over Month | 0.0% | 0.4% |
| Year over Year | 1.0% | 0.8% |
Highlights
Swiss consumer prices were unchanged in September from August, the Federal Statistical Office said Thursday, after a 0.4 percent increase in August. On the year, prices rose 1.0 percent, up from 0.8 percent in August.
Core inflation, which excludes fresh and seasonal products, energy and fuels, was also unchanged on the month and rose 0.5 percent on the year.
Prices of petroleum products rose 4.8 percent on the month and 31.2 percent on the year. Heating oil prices increased 8.2 percent on the month and 65.0 percent on the year. Diesel prices rose 4.4 percent on the month and petrol prices 3.3 percent. Energy and fuels overall rose 2.3 percent on the month and 11.7 percent on the year.
Restaurant and hotel prices fell 0.9 percent on the month. Parahotel accommodation prices dropped 11.2 percent and hotel prices declined 1.2 percent. International package holiday prices fell 3.9 percent, and car rental and car sharing prices dropped 14.2 percent.
Recreation, sport and culture prices declined 0.8 percent on the month. Fresh and seasonal product prices fell 1.4 percent, and food and non-alcoholic beverage prices declined 0.3 percent, with berry prices down 7.6 percent.
Clothing and footwear prices rose 2.2 percent on the month, led by a 11.4 percent increase in prices of women's jumpers and a 9.6 percent rise for men's knitwear. Men's footwear prices fell 6.1 percent and women's footwear prices declined 3.7 percent.
Housing and energy prices rose 0.2 percent on the month and 2.2 percent on the year. Transport prices increased 0.4 percent on the month and 3.6 percent on the year.
Goods prices rose 0.4 percent on the month and 0.9 percent on the year, while services prices fell 0.3 percent on the month and rose 1.0 percent on the year.
Prices of imported products rose 0.5 percent on the month and 2.1 percent on the year. Domestic product prices fell 0.2 percent on the month and rose 0.7 percent on the year.
Definition
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.
Description
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.