ZURICH, May 14 (Reuters) - Swiss producer and import prices posted their sharpest yearly fall in April in over two decades as the strong Swiss franc pushed prices lower, highlighting the deflationary risks facing the Swiss National Bank.
The combined producer and import price index tumbled 3.6
percent from a year ago, more than the 3.1 percent drop expected
by economists
"April producer and import prices provide a stark reminder of the deflationary price pressures in Switzerland. The level of the Swiss franc continues to weigh on import prices despite currency intervention efforts by the SNB," 4Cast Limited analyst Saara Tuuli said.
The year-on-year drop was the sharpest since February 1987, when prices fell 4.3 percent year-on-year.
"The strengthening of the Swiss franc in recent months depressed import prices," the Office said in a statement.
The SNB has taken decisive steps to fight the risk of deflation, including cutting interest rates to 0.25 percent, intervening on the foreign exchange markets to weaken the franc and buying corporate bonds.
Swiss consumer prices fell 0.3 percent year-on-year in April, the Office said earlier this month.
(Reporting by Katie Reid; editing by David Stamp)