Data released by the Swiss Federal Statistical Office on Wednesday morning indicated that the Consumer Price Index - the inflation rate - in Switzerland accelerated during the month of February, at a pace higher than expected.
According to the data, the overall inflation rate in Switzerland slowed to 0.3% year-on-year in February, which was higher than market expectations that foresaw a rise in the Consumer Price Index of about 0.2%. The previous reading had shown that the inflation rate in Switzerland was 0.4% during the previous month of January.
On a monthly basis, the Consumer Price Index in Switzerland grew by 0.6% in February compared to the January reading, which was above expectations that indicated an acceleration of the index's growth by 0.5%, following a contraction of 0.1% in the Consumer Price Index during the previous month of January.
It is worth noting that demand for Swiss exports and demand for the Swiss franc are directly related because foreigners must purchase the local currency to pay for the country’s exports. Demand for exports also affects production and prices in local manufacturing companies.
