Switzerland Producer and Import Prices Fell for the Seventh Month

Producer and import prices in Switzerland fell for the seventh month in February as energy costs slipped lower and the global economic slumped worsened. The headline reading showed a 0.6% drop during the month, which was followed by a 0.8% decline in January, while the annual rate of inflation slipped to -1.8% from -0.9% in previous month, which was the lowest reading in at least seven-years. As the outlook for growth and inflation remain bleak, the Swiss National Bank cut its main interest rate close to zero earlier this week to jump-start the economy, and started buying foreign currencies to stem the appreciation in the exchange rate as the recession deepens and the risks for deflation intensify.