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INSTANT VIEW 1-Swiss CPI down 0.4 pct y/y in Sept

Swiss consumer prices fell 0.4 percent from a year ago and were 0.3 percent higher compared with the previous month, the Federal Statistics Office said on Mo nday.

ANALYSTS' COMMENTS ALESSANDRO BEE, SARASIN

"The trend of the last two to three months of deflation weakening has continued. What is responsible for this is that the basis effect from last year is disappearing. The general trend in Switzerland is that there is no inflation, oil prices are also calming. For the end of the year we expect inflation around zero so that is no reason for the SNB to change course.

"The situation is a bit more comfortable for the SNB than a few months ago. The franc is not sticking to the 1.20 level any more and sight desposits are no longer rising. The SNB can sleep a bit easier. The main drivers for the franc for the next two to three weeks will be whether Spain seeks a bailout and what happens in Greece."

KEY POINTS FROM THE SURVEY

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

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Keywords: SWISS ECONOMY/CPI