Swiss Household Consumption Drops, Fueling Growth Fears

The UBS Swiss consumption indicator fell to 1.85 from 2.22 in June, marking its largest monthly decline since August 2007. The highest inflation in 15 years continues to sap purchasing power, leaving households with less to spend on discretionary items. However, upside wage risks may heighten inflationary fears for the Swiss National Bank, which may push the central to hold a neutral policy stance for the rest of the year.