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The on-going global economic crisis is expected to continue to put pressure on Swiss prices.
The BAK Basel economic institute figures prices will fall an average 2.4 percent this year, while demand will increase.
Non-food product prices are expected to fall the most, nearly 4 percent.
The reason for price pressure is connected to the overvalued Swiss franc.
Consumer sentiment is not gloomy, giving solid half-year retail numbers.
Though many shoppers are still heading over the border to spend francs in the euro zone.
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