News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Swiss Deflation Rises to 3-Year High

Swiss Deflation Rises to 3-Year High

Benjamin Spier, Technical Strategist

THE TAKEAWAY: Swiss annual CPI drops to -1.1%, lower than expected -> SNB’s Jordan appointed president -> Swiss Franc remains steady following yesterday’s decline

Annual Swiss inflation has fallen to the lowest rate in nearly 3 years despite the Swiss National Bank maintaining a policy of currency intervention. The Consumer Price Index for June was reported as 1.1% lower than the prices from June 2011, which was less than analysts’ expectations for the inflation rate to stay at -1.0%. June’s CPI was 0.3% lower than May, when prices remained constant.

Clothing prices were down by 2.8% in June, while alcohol and tobacco prices were up 1.0%, according to the Swiss Statistics Office.

The deflation comes at a time when the Swiss National Bank has been fighting the over strengthening of the Franc against the Euro with a 1.2000 EURCHF floor. Thomas Jordan was recently appointed SNB chairman after serving as the interim chairman because of his commitment to enforcing the floor. The worsening deflation allows the SNB to continue to buy foreign currencies without worrying about the effect of inflation.

The Franc remained relatively steady against the US Dollar in today’s session despite the stronger than expected deflation. USDCHF took a major rally yesterday as the ECB confirmed speculations that they would cut the interest rate for the Euro.

Swiss_Deflation_Rises_to_3-Year_High_body_usdchf.png, Swiss Deflation Rises to 3-Year High

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.