Wednesday , February 21 2018
Home / Perspectives Pictet / Switzerland: inflation edged lower in January

Switzerland: inflation edged lower in January

Summary:
Core inflation fell back to the same level as last October. Our scenario for monetary policy remains unchanged.Headline consumer price index (CPI) inflation eased to 0.7% y-o-y in January from 0.8% y-o-y in December, in line with consensus and our own expectations. Core inflation fell from 0.7% y-o-y in December to 0.5% y-o-y in January.Our inflation outlook remains unchanged. We expect headline inflation to firm up gradually as 2018 progresses, averaging 1.0% in 2018, but with risks tilted to the downside.Given the outlook for inflation is still contained, the Swiss National Bank is likely to remain cautious and true to its current ‘two-pillar’ strategy. Our best guess is that there will be a first rate hike of 25bp in December 2018.Read full report here

Topics:
Nadia Gharbi considers the following as important: , ,

This could be interesting, too:

Luc Luyet writes Our emerging market currencies scorecard gives good marks to real and rouble

Frederik Ducrozet writes Europe chart of the week – French unemployment

Frederik Ducrozet writes Europe chart of the week – French unemployment

Frederik Ducrozet writes Euro area inflation: the Phillips curve and the ‘broad unemployment’ hypothesis

Core inflation fell back to the same level as last October. Our scenario for monetary policy remains unchanged.

Switzerland: inflation edged lower in January

Headline consumer price index (CPI) inflation eased to 0.7% y-o-y in January from 0.8% y-o-y in December, in line with consensus and our own expectations. Core inflation fell from 0.7% y-o-y in December to 0.5% y-o-y in January.

Our inflation outlook remains unchanged. We expect headline inflation to firm up gradually as 2018 progresses, averaging 1.0% in 2018, but with risks tilted to the downside.

Given the outlook for inflation is still contained, the Swiss National Bank is likely to remain cautious and true to its current ‘two-pillar’ strategy. Our best guess is that there will be a first rate hike of 25bp in December 2018.

Nadia Gharbi
Do not hesitate to contact Pictet for an investment proposal. Please contact Zurich Office or the Geneva Office

Leave a Reply

Your email address will not be published. Required fields are marked *