Consumer prices in Switzerland unexpectedly fell 0.3% in March, while the annualized reading for inflation plunged 0.4% from the previous year to mark the biggest decline since December 1959, and the data continues to foreshadow a weakening outlook for price growth as the region faces its worst economic downturn in over a quarter century. As the risks for deflation intensify, the Swiss National Bank may take further steps to stem the downside risks for the export-driven economy, and may continue to intervene in the currency market in an effort to mitigate the appreciating in the Swiss franc.
