Schlegel Downplays Impact of Hot Weather on Swiss Inflation

Swiss National Bank Chairman Martin Schlegel downplayed the impact of record temperatures on food price inflation, citing petroleum products as the main driver behind rising prices. Speaking to radio station SRF, Schlegel noted that the hot summer has had an effect on food prices, but emphasized that policy measures are in place to counteract this.

The SNB's benchmark interest rate remains at 0% despite other central banks hiking borrowing costs to tackle inflation linked to fuel costs. According to Schlegel, the bank expects inflation to decline after a temporary increase and remain within its target range of 0% to 2% by mid-2029.

Schlegel attributed the recent downturn in the value of the franc as a minor change after years of appreciation, stating that 'there have been long periods when the franc actually became a bit stronger almost constantly.'