Swiss Producer and Import Prices - Economic Data Preview

Switzerland’s [B]Producer and Import Prices[/B] are expected to tumble -4.7% in the year May, suggesting continued pressure on consumer prices in the months ahead as firms pass on lower input costs via cheaper finished goods. Although the Swiss National Bank has committed to aggressive monetary easing to combat sliding prices, the annual pace of CPI growth has continued to drop, contracting by a record -1.0% in May. Further weakness threats to entrench deflation expectations, committing the mountain nation to a long-term period of stagnant economic growth as consumers and businesses are encouraged to wait for the best possible bargain and perpetually hold off on spending and investment. The central bank is set to announce policy again this week, opening the door for Swiss Franc volatility as policymakers seem keen on expanding their arsenal of unconventional stimulus measures.