ZURICH, May 7 (Reuters) - Swiss consumer prices fell less than expected on the year in April as retailers raised prices for shoes and clothes, dampening fears of deflation that have prompted the central bank to take drastic policy measures.
Consumer prices fell 0.3 percent from a year ago, but they
rose 0.9 percent compared with March, the Federal Statistics
Office said on Thursday.
In a Reuters poll economists had expected a year-on-year
price decline of 0.6 percent.
The central bank has taken drastic steps to avert deflation. The Swiss National Bank cut its target for the 3-month Swiss franc LIBOR to a record low of 0.25 percent, intervened in the foreign exchange market and started buying corporate bonds.
(Reporting by Sven Egenter; Editing by Ruth Pitchford)