Switzerland January CPI +0.4% vs +0.4% y/y expected

• Prior +0.6%
• Core CPI +1.2% y/y
• Prior +0.7%

Headline annual inflation eased to start the year but core annual inflation is seen accelerating back above 1% in January. As a whole though, Swiss inflation remains well under control and it tees up for another rate cut by the SNB for next month. The central bank can take in some comfort from the latest geopolitical developments involving Russia and Ukraine as that could ease the downside pressure on EUR/CHF i.e. franc strength.

This article was written by Justin Low at www.forexlive.com.