The consumer price index decreased 0.8 percent year-on-year in September, following a 0.9 percent fall in August. Economists had expected a 0.7 percent fall.
On a monthly basis, consumer prices remained unchanged in August. This was in line with economists' expectation.
Prices for international package holidays and hotel accommodation declined in September. Meanwhile, prices for clothing and footwear, and other fruits increased.
The core CPI fell 0.3 percent annually in September and remained unchanged from the previous month.
The EU measure of harmonized index of consumer prices fell 0.1 percent monthly in September and declined 1.1 percent from the previous year.
Separate data from the statistical office showed that the retail sales grew a working-day adjusted 2.5 percent year-on-year in August.
Sales of food, beverages and tobacco gained 8.1 percent yearly in August, while non-food sector sales fell 0.4 percent.
On a monthly basis, seasonally adjusted retail sales fell 1.9 percent in August.
In nominal terms, retail sales rose 1.6 percent annually in August and decreased 2.1 percent from a month ago.
Elsewhere, survey data revealed that the procure.ch Swiss manufacturing PMI rose to 53.1 in September from 51.8 in August. Economists had expected a reading of 54.0.
Any reading above 50.0 indicates expansion in the sector.
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