Swiss Franc: inflation undershoots SNB outlook – Nomura
Nomura strategists note that Swiss Consumer Price Index (CPI) slowed to 0.4% year-on-year in July, helped by weaker car fuel prices and easing imported energy costs.
Nomura strategists have reported that the Swiss Consumer Price Index (CPI) slowed to 0.4% year-on-year in July, falling below the Swiss National Bank's (SNB) forecast of 0.7% for the same period. This indicates a softer outlook for the Swiss Franc (CHF). The core inflation remained at 0.3% year-on-year, slightly lower than both Nomura's expectation of 0.4% and the consensus of 0.3%.
The main factor contributing to the slowdown was a decline in transport prices, which fell by 0.4% month-over-month, contrary to the forecast of a 0.6% increase. Despite domestic prices increasing by 0.5% year-on-year, imported product prices remained unchanged from a year earlier, as the easing of imported energy cost pressures after the Iran war had a moderating effect on inflation.
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