Switzerland’s producer and import prices dropped by 1.8% year-on-year in December 2025, slipping further from a 1.6% fall in the previous month. The latest figure marked the sharpest producer deflation since September, driven by faster decreases in both producer prices (-1.3% vs -1.2% in November) and import costs (-2.8% vs -2.5%). On a monthly basis, producer and import prices fell by 0.2% in December, defying market forecasts of a 0.2% increase but easing from a 0.5% loss in the preceding period. Prices decreased compared to November mainly for petroleum and dairy products in the Producer Price Index, while pharmaceutical preparations, petroleum, and natural gas led declines in the Import Price Index. Average annual inflation in 2025 fell by 1%, mainly due to lower prices for pharmaceuticals, petroleum, electricity, and gas, despite higher food prices. Domestic producer prices fell 0.4% for the year, while import prices dropped 2.2%.

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