- CPI +0.5% vs +0.5% y/y expected
- Prior +0.6%
- Core CPI +0.3% y/y
- Prior +0.3%
Swiss headline annual inflation nudges down slightly in June to 0.5%, with the monthly estimate coming in flat when compared to May. As for core annual inflation, that remains unchanged in June at 0.3%. As such, the overall outlook is pretty much little changed since the month before.
As mentioned in last month’s report:
“Given time, we can expect a broadening in inflation pressures in the economy. But considering the low base to begin with, it’s not likely to materially shift the conversation for the SNB. That especially with the Swiss franc continuing to keep in a firmer position as a whole. And a stronger currency will continue to fuel deflation fears, which remain the key risk for the SNB in the bigger picture.”
But so long as inflationary pressures remain as they are around these levels, there won’t be much to really get any discourse flowing with regards to the SNB. They remain in wait-and-see mode and will be hoping that talk of deflation will be avoided for as long as possible in the coming year(s).
This article was written by Justin Low at investinglive.com.
