Inflation Producer and import price index falls further in October

The price pressure on companies in Switzerland continued to ease in October. The overall producer and import price index (PPI) calculated by the Federal Statistical Office (FSO) fell by 0.3% to 106.9 points.

Compared to October 2023, the price level fell by 1.8%, as reported by the FSO on Friday. Since May 2023, monthly annual inflation based on producer and import prices has thus been negative in every month to date. In September, annual inflation amounted to 1.3%.

Compared to the previous month, producer prices fell by 0.3% and import prices by 0.4%. At -4.4%, import prices again fell more sharply than producer prices (-0.5%) in a year-on-year comparison.

According to the Federal Office, lower prices for watches in particular were offset by higher prices for cables and installation materials. But it was not only watches that became cheaper. Machinery, medical and dental equipment as well as materials, petroleum products and gas also recorded price falls.

Compared to September 2024, the import price index recorded price declines for petroleum products and machinery in particular. However, telecommunications equipment and facilities, electrical equipment, metal goods, furniture, medical and dental equipment and materials and steel also became cheaper in October. In contrast, oil and natural gas, non-ferrous metals and their products, vegetables, melons and potatoes as well as green coffee became more expensive.

The PPI is regarded as a leading indicator for the development of consumer prices, as the costs of production are normally passed on to consumer prices. However, the index has significantly higher swings and is more volatile due to its high dependence on commodities.

SDA