Switzerland’s producer price index (PPI) fell further into negative territory in February, underscoring mounting deflationary pressure at the factory gate level. Year-over-year, PPI declined by 2.7% in February 2026, compared with a 2.2% drop recorded in January 2026.
The data, updated on 17 March 2026, show that price declines for producers have intensified on an annual basis, with the February figure marking a deeper contraction relative to the same month a year earlier. In line with the comparison methodology, the January reading reflected the change versus January a year before, while the latest February print measures price developments against February of the previous year.
The widening negative gap in producer prices may signal ongoing cost pressures relief for manufacturers but could also point to weaker pricing power and subdued demand along the value chain. Market participants will be watching closely to see whether this producer-level deflation feeds through to consumer prices and influences the Swiss policy outlook in the coming months.
