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CH: Producer and Import Price Index
| Actual | Previous | |
| Month over Month | -0.3% | -0.2% |
| Year over Year | -2.7% | -2.2% |
Highlights
The February 2026 producer and import price index suggests a mild but notable easing of upstream inflationary pressures. A 0.3 percent month-over-month decline reflects short-term cost moderation within production and import channels. This downward movement appears to be driven primarily by price reductions in pharmaceutical and chemical products, which may indicate improved supply conditions, reduced input costs, or easing global demand within these sectors.
However, this disinflationary trend is not uniform. Rising prices in petroleum products and natural gas point to persistent volatility in energy markets, which continues to act as a countervailing force against broader price declines. This reflects divergence, with energy-related inputs remaining inflationary while non-energy industrial inputs softening.
On an annual basis, the 2.7 percent decline in overall producer and import prices signals a more pronounced easing of cost pressures compared to the previous year. This could translate into lower production costs for firms and, potentially, reduced consumer price inflation if passed through along the value chain. In essence, the latest information reflects a cautiously improving inflation outlook, albeit with energy price risks still prominent.
Definition
The producer price and import price index focuses on the actual prices of products on the market (transaction price) at the time of the order. The prices of domestic products are taken at the producer or factory level, excluding value added tax and consumption taxes. For imports, prices are collected at the Swiss border, without the value added tax, taxes on consumption and tariffs. Changes in the index provide a guide to inflation from the point of view of the product's producer/manufacturer
Description
The producer price and import price index measures prices at the producer level before they are passed along to consumers. Since the producer price index measures prices of consumer goods and capital equipment, a portion of the inflation at the producer level gets passed through to the consumer price index (CPI). By tracking price pressures in the pipeline, investors can anticipate inflationary consequences in coming months. Producer and import prices are more volatile than consumer prices. While the CPI is the price index with the most impact in setting interest rates, the producer price and import price index provides significant information earlier in the production process. The producer price and import price index is considered a precursor of both consumer price inflation and profits. If the prices paid to manufacturers increase, businesses are faced with either charging higher prices or they taking a cut in profits. The ability to pass along price increases depends on the strength and competitiveness of the marketplace. The bond market rallies when the producer price and import price index decreases or posts only small increases, but bond prices fall when the index posts larger-than-expected gains. The equity market rallies with the bond market because low inflation promises low interest rates and is good for profits.