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Swiss Producer and Import Prices - European Economic Data Preview
Monday, 15 December 2008 03:27:26 GMT  |  Ilya Spivak, Currency Analyst
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The economic calendar is comparatively tame in European hours, with Switzerland’s Producer and Import Prices the only significant item on the docket. Wholesale inflation is expected to fall to 1.9% in the year to November, the lowest in over 2.5 years. The decline foreshadows further slowdown in consumer prices, the most common measure of headline inflation, as producers pass on falling input costs through cheaper final goods. Indeed, the SNB lowered its inflation forecast for 2009 by a full percentage point last week as the central bank cut interest rates by another 0.50%, stating explicitly that they were willing to take “further measures” if needed. As interest rates tumble to zero around the world, policymakers may look to “quantitative easing” in an attempt to spur spending and investment. This technique essentially means the central bank will flood the banking system with excess money to promote lending.

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