Switzerland’s Consumer Prices Slows More than Forecasts in June
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USD/CHF: Consumer prices in Switzerland for the month of June slid 0.4 percent after falling 0.1 percent in May amid expectations of -0.1 percent. At the same time, annualized prices increased 0.5 percent. Looking at the breakdown of the report, petroleum products jumped 12.0 percent from a year ago, while durable goods scaled back 2.1 percent, according to the Swiss statistics office in Neuchatel. Looking ahead, inflation in the region will likely remain below SNB’s target of 2.0 percent as the euro zone may slip back into a mild recession by the end of this year, early next year as governments scale back stimulus measures to fight their ballooning budget deficits. In turn, a downturn in the 16-member euro area will drag the recovery in the Swiss region because the euro zone is Switzerland’s key trading partner. To discuss this or other topics, please visit the Swiss franc currency room.
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Written by Michael Wright, Currency Analyst
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