At its June meeting, the SNB struck a relaxed tone on inflation. After rising from 0.1% in February to 0.6% in May, inflation in Switzerland remains comfortably within the SNB’s target range of 0–2%. Energy prices have of course increased in Switzerland, as elsewhere (+17.7% year-on-year for petroleum products). However, the strength of the Swiss franc continues to exert significant disinflationary pressure. Imported goods, which account for around 22% of the consumer price index, rose by only 0.7% YoY in May. This marks a shift from the past three years, during which imported prices were consistently declining, but ... (full story)