Jue, Jun 13th 2024
Price pressure for companies in Switzerland eased in May 2024, with a 0.3% drop in the producer and import price index (PPI). Learn about the shifts in producer and import prices, and the impact of lower oil and pharmaceutical prices.
Price pressure for companies in Switzerland eased slightly in May compared to the previous month. The overall producer and import price index (PPI) calculated by the Federal Statistical Office (FSO) fell by 0.3% to 107.2% in May 2024 compared to April.
Compared to May 2023, the price level fell by 1.8%, according to the report. This is the 13th consecutive month in which annual inflation based on producer and import prices has been negative. In April, this PPI value was also -1.8%.
The latest statistics show differences in producer and import prices: while producer prices fell by 0.5% compared to the previous month, import prices remained stable. In a year-on-year comparison, however, import prices fell more sharply (-2.9%) than producer prices (-1.3%).
According to the FSO, the decline in the producer price index compared to the previous month was mainly due to lower prices for pharmaceutical products and petroleum products. However, higher prices were recorded for electricity (for large consumers) and plastic products.
Higher import prices were recorded in particular for non-ferrous metals and products made from them. Additionally, higher prices were noted for plastics in primary forms, rubber and plastic products, glass and glass products, ceramics and the processing of stone and earth, paper and paper products, pharmaceutical specialties, and cocoa and chocolate products.
By contrast, mineral oil products, crude oil, natural gas, pharmaceutical raw materials, and organic products from the chemical industry became cheaper.
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, it has significantly higher swings and is much more volatile due to the high dependence on commodities.
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