- Prior +0.1%
- Core CPI +0.5% y/y
- Prior +0.5%
Slight delay in the release by the source. The monthly estimate points to another negative reading (-0.1%), missing slightly on estimates this time around. That will be a slight concern looking out to the year ahead. This marks a fifth consecutive negative monthly estimate after recording flat inflation in August last year.
That being said, the focus will stay on core inflation. And the monthly estimate there at least shows a +0.1% reading. So, there is a bit of comfort for the SNB in trying to deal with deflation pressures. Core annual inflation is seen steady at +0.5%, so that continues to afford the central bank some breathing room for now.
As a reminder, the current backdrop sees the SNB wanting to avoid negative interest rates for as much as they can and for as long as they can get away with. And that means any further significant declines in pressures will be most welcome, at least for the time being.
This article was written by Justin Low at investinglive.com.