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Swiss Producer and Import Price Index in March 2018: +2.0 percent YoY, +0.2 percent MoM

Summary:
The Producer Price Index (PPI) or officially named “Producer and Import Price Index” describes the changes in prices for producers and importers. For us it is interesting because it is used in the formula for the Real Effective Exchange Rate. When producers and importers profit on lower price changes when compared to other countries, then the Swiss Franc reduces its overvaluation. The Swiss PPI values of -6% in 2015 (see below), compared to -3% in Europe or -1% in the U.S., diminished the overvaluation. In 2017, however, producer prices are rising again – in both Europe and Switzerland. See more in Is the Swiss Franc overvalued? Neuchâtel, 16 April 2018 (FSO) – The Producer and Import Price Index fell in March 2018

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The Producer Price Index (PPI) or officially named “Producer and Import Price Index” describes the changes in prices for producers and importers. For us it is interesting because it is used in the formula for the Real Effective Exchange Rate. When producers and importers profit on lower price changes when compared to other countries, then the Swiss Franc reduces its overvaluation. The Swiss PPI values of -6% in 2015 (see below), compared to -3% in Europe or -1% in the U.S., diminished the overvaluation. In 2017, however, producer prices are rising again – in both Europe and Switzerland. See more in Is the Swiss Franc overvalued?

Neuchâtel, 16 April 2018 (FSO) – The Producer and Import Price Index fell in March 2018 by 0.2% compared with the previous month, reaching 102.3 points (December 2015 = 100). This decline was due in particular to lower prices for petroleum products and pharmaceutical preparations. Compared with March 2017, the price level of the whole range of domestic and imported products rose by 2.0%. These are some of the findings from the Federal Statistical Office (FSO).

Switzerland Producer Price Index (PPI) YoY, May 2013 - Apr 2018

(see more posts on Switzerland Producer Price Index, )
Swiss Producer and Import Price Index in March 2018: +2.0 percent YoY, +0.2 percent MoM

Source: Investing.com - Click to enlarge

Download press release Producer and Import Price Index fell by 0.2% in March 2018

German Text:

Neuchâtel, 16. April 2018 (BFS) – Der Gesamtindex der Produzenten- und Importpreise sank im März 2018 gegenüber dem Vormonat um 0,2 Prozent und erreichte den Stand von 102,3 Punkten (Dezember 2015 = 100). Der Rückgang ist vor allem auf tiefere Preise für Mineralölprodukte und pharmazeutische Spezialitäten zurückzuführen. Im Vergleich zum März 2017 stieg das Preisniveau des Gesamtangebots von Inland- und Importprodukten um 2,0 Prozent. Dies geht aus den Zahlen des Bundesamts für Statistik (BFS) hervor.

Steigende Preise gegenüber dem Vormonat registrierte man im Produzentenpreisindex insbesondere für Schrott. Preisrückgänge beobachtete man dagegen für Mineralölprodukte.

Für den Rückgang des Importpreisindexes gegenüber dem Februar 2018 waren vor allem pharmazeutische Spezialitäten und Mineralölprodukte verantwortlich. Sinkende Preise zeigten auch Automobile und Automobilteile, Motorräder sowie Aluminium und daraus hergestellte Produkte. Teurer wurden hingegen Kern- und Steinobst.

Swiss Producer and Import Price Index in March 2018: +2.0 percent YoY, +0.2 percent MoM

- Click to enlarge

Swiss Producer and Import Price Index in March 2018: +2.0 percent YoY, +0.2 percent MoM


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George Dorgan
George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on SeekingAlpha.com and on this blog. Several Swiss and international financial advisors support the site. These firms aim to deliver independent advice from the often misleading mainstream of banks and asset managers. George is FinTech entrepreneur, financial author and alternative economist. He speak seven languages fluently.

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