Indicators
Rich World’s Gentlest Inflation Shock Throws Spotlight on Swiss
- SNB is raising rates to curb lowest price growth in OECD
- ‘Swiss protectionism,’ CPI basket and franc have all helped
From its 2021 low point, the franc nominally appreciated some 13% against the euro.
Photographer: Stefan Wermuth/BloombergThis article is for subscribers only.
Just as counterparts suffer the worst cost-of-living crisis in a generation, Switzerland is standing out with probably the most benign inflation shock in the advanced world.
Even if Swiss National Bank officials warn they may need to keep raising interest rates, the annual price growth they’re confronting — now slightly above 3% — remains the OECD’s lowest, a fraction of that in the neighboring euro region and the US, and less than in Japan too.