Swiss Annual Inflation Cools to Four-Month Low in July, Weighing on Franc
| Pair | Now | Since publish |
|---|---|---|
| USDCHF | — | — |
- Swiss annual inflation slowed to 0.4% in July.
- Marks a four-month low, down from 0.5% in June.
- Swiss Franc (CHF) faces headwinds, reinforcing SNB on-hold expectations.
Switzerland’s annual consumer price inflation slowed to a four-month low of 0.4% in July, down from 0.5% in June, as reported by the Federal Statistical Office. This moderation was partly driven by deepening deflation in food and non-alcoholic beverages at -1.3% and a 0.4% decline in clothing prices, despite increases in transport and education costs. The data indicates a limited pass-through from rising energy prices, contrasting with inflationary pressures observed across much of Europe. This cooling inflation has contributed to headwinds for the Swiss Franc (CHF), with the USD/CHF pair trading around 0.8100 during Asian hours on Tuesday. The slowdown reinforces expectations that the Swiss National Bank (SNB) will maintain its policy rates at 0%, despite its previous anticipation of a modest near-term inflation pickup.