Swiss Inflation Eases As Growth Slows

Swiss consumer prices rose 2.3% from a years earlier slowing from 2.6% in March. Economists were expecting a 2.4% increase as record food and energy costs push up prices. Weakening demand for private services and durable goods saw their prices decline. The U.S. slowdown and financial crisis are weighing on growth, as the IMF predicts growth will slow to 1.3%. The Swiss economy can sustain optimal growth at 1.9% before putting pressure on prices. Prices falling from a 14 year high will give the central bank room to cut rates in the future, as they stand at a six year high of 2.75%.

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