FXstreet.com (Barcelona) - Consumer prices have eased in December in Switzerland to the lowest year on year growing rates seen in the whole 2008, according to figures released by the Swiss Federal Statistics Office.

Prices at consumer level have declined 0.5% in Switzerland in December, while year on year the increase has been the 0.7%. To see such a mild year on year increment on inflation we have to go back to October 2007. In November 2008, prices increased at a 1.5% year on year pace.

Despite the low inflation, the Swiss National Bank does not have a big margin for monetary policy, since interest rates have been trimmed down to 0.5%, however, on the light of such low inflation, some analysts observe the possibility to a further rate cut to 0.25% the lowest rate since March 2003.