SNB anticipates inflation to increase even if there are occasional negative readings, and is prepared to take action in the foreign exchange market (CHF)

Swiss Central Bank Unfazed by Potential Negative Inflation

Schlegel indicated that Switzerland might see brief periods of negative inflation, but emphasized that such occurrences would not immediately worry central bank officials. The Swiss National Bank remains committed to maintaining price stability over the medium term. During remarks in Zurich, Schlegel highlighted that inflation is currently very low, with the annual rate for January at just 0.1%—the bottom of the SNB’s target range of 0 to 2%. Although inflationary pressures have shown little movement, the central bank anticipates that price increases will accelerate in the coming months. A few negative inflation readings, he noted, would not be cause for alarm.