ZURICH, April 3 (Reuters) - Swiss consumer prices fell by more than expected in March as energy, rent and transport costs slid, data showed on Thursday.
Consumer prices fell 0.4 percent from a year ago in March and were 0.3 percent lower compared with the previous month, the Federal Statistics Office said on Friday after unexpected monthly and yearly rises of 0.2 percent in February. Economists polled by Reuters had expected a yearly rate of consumer price inflation of between -0.3 percent and +0.2 percent, with a median of 12 forecasts at -0.1 percent. They predicted the monthly figure would be flat.
Inflation has dropped quickly from a 15-year high of 3.1 percent hit last July.
Swiss National Bank Vice-President Philipp Hildebrand said on Thursday the central bank will use all means to prevent a further rise of the Swiss franc as this could carry deflationary risks, prompting the franc to drop against major currencies.
The SNB cut rates to an historic low of 0.25 percent on March 12 and said it would buy foreign currencies to prevent a further appreciation of the franc. It said at the time it would also intensify repo operations and buy corporate bonds.
The SNB sees the Swiss economy shrinking by 2.5 to 3.0 percent this year and forecasts that consumer prices will fall 0.5 percent and remain close to zero in 2010 and 2011. (Reporting by Emma Thomasson; editing by David Stamp)