🇨🇭❗️Cable FX Macro Weekly Note: Switzerland Consumer Prices

**As seen in Risk In The Week report 09/26/25, get full access now 

Swiss CPI rose by 0.2% year-over-year, matching the rate from July 2025 and aligning with economist expectations. This marks the third consecutive month of positive inflation after a period of deflation earlier in the year. On a monthly basis, the CPI fell by 0.1% from July, slightly missing forecasts for flat growth. Looking at the major components, there was a sharp rebound in clothing & footwear, up 4.5% Y/y from a prior -0.2%, this was August biggest upside driver. Core CPI eased to 0.7% from 0.8% in July, signaling stable underlying pressures.

UBS forecasts inflation to average 0.8% for 2025 and 1.0% for 2026, with potential upside from global energy prices but downside from a strong franc. Economists at Scotiabank noted the SNB being open to return to NIRP during its latest monetary policy decision, the latest OIS pricing pencilled in a 10-15% chance of the central bank dropping rates below 0% by December.