Producer and Import Prices in Switzerland were slightly weaker than expected, with the monthly reading holding flat in July versus expectation for a 0.1% gain. Meanwhile, the annualized rate crossed the wires at -6.1% amid a -5.8% forecast, which was the largest decline in nearly 34 years, and the slump in crude oil may continue to hamper the outlook for inflation as energy prices remain well below the previous year’s peak. Mounting risks for deflation could lead the Swiss National Bank to intervene in the currency markets again as policymakers pledge to stem the appreciation in the exchange rate, and the EUR/CHF is likely to remain well support throughout the second-half of the year as investors weigh the outlook for future policy.
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