SWISS 1988 INFLATION SEEN AT TWO PCT - INSTITUTE Swiss inflation is likely to rise in 1987 and 1988 because of inflationary tendencies in the domestic economy, the Centre for Economic Research of the Federal Institute of Technology said in its spring review. It forecast a rise in consumer prices of two pct in 1988 compared with 1.3 pct in 1987. Low import prices in 1986 helped to keep annual inflation down to 0.8 pct. The centre said that in general the outlook for the Swiss economy in 1987 and 1988 remained favourable, despite the more difficult international economic climate facing export industry. The centre repeated its previous forecast that growth in Swiss domestic product would slow to 2.2 pct in 1987 from 2.5 pct in 1986. It revised its forecast for 1988 GDP growth to 1.7 pct from 1.6 pct in its last autumn review. Domestic demand will continue to replace exports as the motor of economic growth. Private consumption will grow by three pct in 1987 and two pct in 1988 against 3.75 pct in 1986. Growth in goods exports will slow to 1.75 pct in 1987 from 2.1 pct in 1986 but pick up slightly to 2.5 pct in 1988. All three figures are well below the Swiss average for recent years. In 1985, for example, exports increased by 9.1 pct. The centre said the strength of the Swiss franc, which has firmed sharply in recent months, would continue to put pressure on Swiss exporters. It forecast that imports of goods would grow by a more modest 4.5 pct in 1987 and 3.25 pct in 1988 than in 1986, when import prices fell substantially and imports rose by 8.2 pct. Industrial production will grow by 1.6 pct in 1987 and 1.2 pct in 1988 compared with 4.2 pct in 1986.