Swiss CPI YY (May) 2.9% vs. Exp. 2.6% (Prev. 2.5%)

via FSO

Reaction details (07:35)

• In reaction to this hot inflation print, and over the course of three minutes, EUR/CHF fell from 1.0266 to a session low of 1.0217.

Analysis details (07:35)

• Follows Swiss CPI YY printing at 2.4% and 2.5% in March and April respectively and thus implying upward revisions to the inflation forecasts which were set in March and had the 2022 peak at 2.2% for an overall 2022 average of 2.1%.


• Note, the internals of the release (see image) points to a significant increase in imported products, with domestic products increasing but by a more modest magnitude.


• Reminder, the next policy announcement is due on June 16th and will feature a press conference.


• Recently, SNB's Jordan and Maechler have made clear that they are prepared to act if inflation strengthens/remains outside of target respectively. However, Zurbrugg has most recently taken a slightly more laissez-faire approach, stressing that inflation drivers are temporary and not seeing a spread of such factors domestically - as the SNB are provided with CPI data four-days before release, he would have been aware of the print before providing this speech. Although, it is worth bearing in mind that Zurbrugg leaves following the June gathering, to be replaced by Schlegel in August.

02 Jun 2022 - 07:30- Fixed IncomeData- Source: Reuters