Swiss May Inflation Seen at 0.6% on Weak Core, GDP Backdrop

Commerzbank analysts forecast Swiss headline inflation below consensus at 0.6% for May, citing subdued core prices and recent GDP data. Swiss inflation for May is expected to come in at 0.6%, below the 0.7% consensus, with core inflation projected at 0.3%. Analysts highlig

Commerzbank analysts forecast Swiss headline inflation below consensus at 0.6% for May, citing subdued core prices and recent GDP data.

Swiss inflation for May is expected to come in at 0.6%, below the 0.7% consensus, with core inflation projected at 0.3%. Analysts highlight that recent GDP data support this softer inflation outlook, suggesting limited price pressures in the economy.

The forecast contrasts with prior expectations and follows a period of modest economic growth. April’s headline inflation stood at 1.4%, while core inflation was 1.1%, indicating a potential slowdown in price increases.

Markets may interpret the data as reducing pressure on the Swiss National Bank to tighten monetary policy further, though no immediate reaction has been observed.

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