FX.co ★ Swiss Producer and Import Deflation Sharpest in 3 Months

In December 2025, Switzerland experienced a significant decline in producer and import prices, decreasing by 1.8% compared to the previous year. This reduction surpassed the 1.6% decline recorded in November and represents the most considerable deflation in producer prices since September. The decrease was driven by larger drops in producer prices, which fell by 1.3% compared to a 1.2% decrease in November, and import costs, which slid by 2.8% following a 2.5% reduction. On a month-to-month basis, producer and import prices dropped by 0.2% for December, countering market predictions of a 0.2% rise and slightly improving from the 0.5% decline noted in the prior month. Specifically, in the Producer Price Index, prices for petroleum and dairy products decreased, while in the Import Price Index, significant declines were observed in pharmaceuticals, petroleum, and natural gas. Overall, the average annual inflation rate in 2025 decreased by 1%, largely due to reduced costs for pharmaceuticals, petroleum, electricity, and gas, despite an increase in food prices. Throughout the year, domestic producer prices fell by 0.4%, and import prices declined by 2.2%.