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Swiss Inflation at 1993 High

SWITZERLAND DATA
MNI (London)
  • Swiss CPI jumped 0.5pp in June to +3.4% y/y, outpacing consensus estimates of a more modest 0.2pp rise to 3.2% y/y. The harmonised rate saw a similar 0.5pp bounce to +3.2% y/y. Core inflation ticked up a further 0.2pp to +1.9% m/m, testing the 2% maximum inflation rate targeted by the SNB.
  • On the month, prices accelerated by 0.5pp, also faster than expectations albeit a slowdown from +0.7% m/m seen in May. Energy prices continue to be the key upwards driver, whereby heating oil saw a record price increase in June. Fresh produce prices contributed to the 1.1% m/m jump in food inflation.
  • Despite inflation in Switzerland remaining relatively low compared to neighbouring countries, this is a substantial acceleration , and even the pre-June measures prompted the SNB to surprise markets with a 0.5pp hike last month in anticipation of building inflationary pressures. Imported product prices rose 1.2% m/m alone, jumping 8.5% y/y in June and adding significant pressure to domestic prices and the franc.

Source: Swiss Federal Statistical Office

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