Swiss Producer Prices Fall 0.2% in September 2025

The Federal Statistical Office (FSO) reported that Switzerland’s Producer and Import Price Index fell by 0.2% in September 2025 compared to the previous month, settling at 105.3 points using December 2020 as the 100-point baseline. This decline marks another month of downward pressure on producer prices, continuing a trend that has been observed throughout much of 2025. The most significant contributors to this monthly decrease were petroleum and natural gas, along with petroleum products, which saw substantial price reductions during the period.

The energy sector’s performance has been a critical factor in Switzerland’s pricing dynamics throughout 2025. The consistent decline in petroleum and natural gas prices reflects both global market conditions and specific domestic factors affecting the Swiss economy. These upstream price movements are closely monitored by economists and policymakers as they often serve as leading indicators for future consumer price trends, though the transmission mechanism can vary depending on market structure and competitive pressures.

When compared with September 2024, the price level of the entire range of domestic and imported products fell by 1.8%, indicating a more substantial deflationary trend over the twelve-month period. This year-over-year decline represents one of the more significant contractions in recent Swiss economic history and suggests that the deflationary pressures observed in the monthly data are part of a broader, sustained pattern rather than temporary market fluctuations.

The 1.8% annual decrease in the Producer and Import Price Index provides important context for understanding Switzerland’s current economic environment. While consumer price inflation has remained relatively stable in many developed economies, Switzerland’s producer-level deflation suggests that upstream cost pressures are weakening significantly. This could have implications for corporate profitability, investment decisions, and ultimately, economic growth if the trend persists into 2026.

While petroleum and natural gas prices drove the overall index lower, not all commodities followed this downward trajectory. Green coffee emerged as a notable exception, with prices increasing during September 2025. This divergence highlights the complex nature of global commodity markets and the varying factors that influence different sectors of the economy.

The contrasting performance between energy commodities and agricultural products like green coffee underscores the importance of analyzing sector-specific dynamics when interpreting overall price indices. Factors such as weather conditions affecting coffee harvests, changing global demand patterns, and supply chain disruptions can create significant price movements in specific commodity categories even when broader trends point in the opposite direction. For Swiss importers and producers, these divergent price movements create both challenges and opportunities depending on their exposure to different commodity markets.

The continued decline in the Producer and Import Price Index, as documented by the Federal Statistical Office, presents important considerations for Swiss monetary and economic policy. Persistent deflation at the producer level could eventually filter through to consumer prices, potentially complicating the Swiss National Bank’s inflation management objectives. The 1.8% year-over-year decline represents a significant deviation from typical inflation targets and may warrant close monitoring in the coming months.

For businesses operating in Switzerland, the declining producer prices create a mixed environment. While lower input costs for energy-intensive industries may provide some margin relief, the broader deflationary trend could signal weakening demand both domestically and in key export markets. The Federal Statistical Office’s ongoing monitoring of these price developments will be crucial for policymakers seeking to balance economic stability with growth objectives in the remainder of 2025 and beyond.