Swiss CPI YY (Jan) 1.3% vs. Exp. 1.7% (Prev. 1.7%)

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Reaction details (07:33)

• A significantly cooler than expected print which has sparked immediate CHF pressure, with EUR/CHF spiking higher from 0.9429 to 0.9458.


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  Market pricing for the March 21st meeting has seen a marked dovish shift to a 58% chance of a 25bp cut (pre-release ~28%).

Analysis details (07:39)

• The much cooler than forecast print is at odds with recent remarks from SNB Chair Jordan that Swiss inflation "probably accelerated in January" and that he expected inflation to rise again a little but to remain shy of 2.0% in 2024.


• While the figure is encouraging, the breakdown of the release showing a 2% Y/Y increase for domestic products will be a point of concern for the SNB. More pertinently, the February release will include the latest estimate of rental price pressures; on January 23rd, Jordan said he "expects some inflationary pressure from rents".

13 Feb 2024 - 07:30- ForexData- Source: Reuters