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Swiss prices fall more than expected in Nov
December 6, 2012 / 8:41 AM / 5 years ago

Swiss prices fall more than expected in Nov

* CPI down 0.4 pct year/year, down 0.3 month/month

* Analysts had forecast flat prices y/y and m/m

* Franc dips against euro after data

* Central Bank keeping franc cap in place

ZURICH, Dec 6 (Reuters) - Swiss consumer prices fell more than expected in November due to the falling cost of fuel, rents and food, supporting the case for the Swiss National Bank to maintain its cap on the franc.

Swiss consumer prices fell 0.4 percent from a year ago compared to a drop of 0.2 percent in October, and were 0.3 percent lower compared with the previous month. Analysts had forecast flat prices on the month..

Seeking to prevent deflation and a recession, the SNB capped the franc at 1.20 per euro in September 2011 after investors seeking a safe-haven from the euro zone crisis had pushed the Swiss currency from one record to another.

The franc ticked lower after the inflation data, trading at around 1.2106 per euro at 0824 GMT, compared to 1.2096 before the announcement.

SNB officials have stressed their determination to keep the lid on the franc in recent weeks, saying there are no signs of inflation for the short or medium term.

Core inflation, which strips out volatile price elements such as fuel, came in at minus 0.6 percent in November compared with minus 0.8 percent in October. (Reporting by Emma Thomasson; Editing by John Stonestreet)

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