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INSTANT VIEW 2-Swiss CPI down 0.4 pct y/y in Sept

Swiss consumer prices fell 0.4 percent from a year ago and were0.3 percent higher compared with the previous month, the FederalStatistics Office said on Mo nday.

ANALYSTS' COMMENTS CORNELIA LUCHSINGER, ZKB

"This is more of the same, but prices are going in the rightdirection. The negative price dynamics are running out now,especially because the Swiss franc floor has been there a yearnow.

"In August we had month on month inflation flat, thenegative price dynamics are flattening out now and gettingpositive again. We expect month on month inflation to bepositive and year-on-year inflation to be positive by the end ofthe year."

MAXIME BOTTERON, CREDIT SUISSE

"They're in line with our expectations. If you look at theaverage of Q3, you get a -0.5 y/y, exactly what the SNB said. Sothe prices are developing as expected."

"For the coming months we expect inflation just above zero,possibly even above 1 percent in early 2013. That's chiefly dueto base effects and can hardly be regarded as inflation."

"That shouldn't mean the SNB will deviate from its policy -there's no inflationary pressure in Switzerland at the moment."

ALESSANDRO BEE, SARASIN

"The trend of the last two to three months of deflationweakening has continued. What is responsible for this is thatthe basis effect from last year is disappearing. The generaltrend in Switzerland is that there is no inflation, oil pricesare also calming. For the end of the year we expect inflationaround zero so that is no reason for the SNB to change course.

"The situation is a bit more comfortable for the SNB than afew months ago. The franc is not sticking to the 1.20 level anymore and sight deposits are no longer rising. The SNB can sleepa bit easier. The main drivers for the franc for the next two tothree weeks will be whether Spain seeks a bailout and whathappens in Greece."

KEY POINTS FROM THE SURVEY

*"The rise in the consumer price index in Sept. 2012 by 0.3percent is chiefly due to the end of the sales in the clothingsector and to higher prices for petroleum products."

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Keywords: SWISS ECONOMY/CPI