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Swiss inflation hits 56-year-low

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By Euronews
Swiss inflation hits 56-year-low

Inflation in Switzerland has slumped to its lowest level since 1959.

Consumer prices posted their biggest monthly fall in 56 years in August, the result of a rapidly appreciating currency and low oil prices.

The Swiss central bank is unlikely to announce any major change in policy at its upcoming September meeting, and official policy remains to try and keep the Swiss Franc from rising any more, with interventions on the foreign exchange market one of several tools the bank will apply.

Removing the cap on the franc in January when it ceased to shadow the euro meant an appreciation strong enough to lead to a 5.5% collapse in overall import prices as euro-denominated goods became cheaper.

Domestic prices however slightly increased, indicated there is no slackening in demand.