Forex Pros – Swiss consumer price inflation fell more than expected in June, official data showed on Tuesday.
In a report the Federal Statistics Office said consumer price inflation fell 0.4% in June, after declining 0.1% in May.
Analysts had expected an increase of 0.1% in June.
It appears likely that the Swiss central bank will once again decide to intervene in currency markets in the wake of the report.
Three weeks ago the bank said that the “deflationary risk in Switzerland has largely disappeared”, but added that if current “downside risks” from the fiscal crisis in the EU materialize “via an appreciation of the Swiss Franc and lead to a renewed threat of deflation,” the SNB would “take all the measures necessary to ensure price stability”.
Following the release of the data, the Swiss franc was up against the U.S. dollar with USD/CHF shedding 0.43% to hit 1.0601.
