- Prior +0.3%
- Core CPI +0.3% y/y
- Prior +0.4%
Even with price pressures set to rise in the months ahead, the Swiss economy now feels like it has a bit of a buffer to work with. But in the bigger picture, it's not exactly a good thing if the Swiss franc continues to stay at more elevated levels. That will in turn feed to depress price pressures instead.
The impact of higher energy prices will eventually feed through but a stronger currency will help cushion against that somewhat. The real fear for the SNB is what happens when the conflict ends and second round effects are not as evident. It'll be back to the drawing board again in needing to deal with a strong currency while being up against the ropes of further monetary policy easing.
For now, they can at least avoid from needing to explore unconventional policy methods such as negative interest rates again. But for Switzerland, it always feels like we will revisit this topic again inevitably down the road.
