July Swiss CPI rose 0.4% year-on-year, undershooting the SNB’s 0.7% Q3 forecast by 0.2 percentage points.
Swiss inflation slowed to 0.4% year-on-year in July, down from 0.5% in June, driven by lower car fuel prices and easing imported energy costs. Core inflation held steady at 0.3% year-on-year, matching consensus estimates.
The Swiss National Bank (SNB) had projected inflation to average 0.7% in the third quarter. However, July’s data fell short, with Nomura now forecasting Q3 inflation at 0.5%, 0.2 percentage points below the SNB’s outlook. Transport prices declined 0.4% month-on-month, surprising analysts.
Imported product prices remained flat year-on-year as energy cost pressures eased, contrasting with earlier inflationary impacts from the Iran conflict. Domestic prices rose 0.5% year-on-year, but the overall trend suggests a softer inflation backdrop for the Swiss Franc (CHF).