Switzerland’s Producer Price Index (PPI) fell further into negative territory at the start of 2026, signaling ongoing disinflationary pressure at the factory gate. In January 2026, the PPI declined by 2.2% year-over-year, compared with a 1.8% annual drop recorded in December 2025.
The data, updated on 23 February 2026, show that producer prices are weakening more sharply than in the previous month when measured against the same period a year earlier. This year-over-year comparison framework indicates that cost pressures for Swiss producers continue to ease, which could, over time, filter through to consumer prices and influence the broader inflation outlook.
The deepening decline in producer prices may offer some relief to businesses facing input costs, but it also underscores softer pricing power in the industrial sector. Market participants and policymakers are likely to monitor whether this downward trend in PPI persists, as it could have implications for monetary policy and growth expectations in Switzerland.
