Swiss Inflation Falls below Target, but Central Bank may Tighten Further

Swiss inflation fell below the upper end of the SNB‘s 2 percent target, providing limited comfort to officials who have signaled further monetary tightening is possible.
The CPI rose 1.7 percent in June from a year earlier, down from 2.2 percent in the previous month, as energy costs fell from a year earlier.
Underlying inflation, which strips out these volatile factors, also fell to 1.8%, according to the Swiss Statistics Office.
While inflation in Switzerland is already the lowest among OECD members since the onset of the energy crisis, the figures will give central bankers some comfort that consumer prices are not yet out of control.
Even so, the SNB said it was likely to raise rates again.
Policymakers predict inflation will rebound to 2% by the end of the year and then remain above that level until early 2026.