Producer and import price index increases in August compared to the previous month
Published: Monday, Sep 16th 2024, 09:00
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Price pressure for companies in Switzerland rose again slightly in August 2024 compared to the previous month, after remaining stable in June and July. The overall producer and import price index (PPI) calculated by the Federal Statistical Office (FSO) rose by 0.2% to 107.4 points.
Compared to August 2023, however, the price level fell by 1.2%, as reported by the FSO on Monday. This means that monthly annual inflation based on producer and import prices has been negative since May 2023. In July, the annual decline was 1.7%.
Producer and import prices moved in different directions: Producer prices rose by 0.6% compared to the previous month, while import prices fell by 0.5%. In a year-on-year comparison, however, import prices fell by 3.4%, a much sharper decline than producer prices (-0.2%).
The increase in the producer price index compared to the previous month was mainly due to higher prices for pharmaceutical products, according to the Federal Office. Organic products from the chemical industry and raw milk were also more expensive. By contrast, petroleum products, electricity (for large consumers), dyes and pigments as well as non-ferrous metal products were cheaper.
In the import price index, price decreases compared to July 2024 were recorded in particular for petroleum products, non-ferrous metals and products made from them, as well as for plastic products. By contrast, organic products from the chemical industry, pharmaceutical raw materials, crude oil and natural gas as well as other chemical products 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 much more volatile due to the high dependence on commodities.
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