Swiss Central Bank Downplays Hot Weather Impact on Food Inflation

Swiss National Bank Chairman Martin Schlegel has downplayed the impact of record temperatures on food price inflation, stating that it's not a major factor behind rising Swiss inflation. The country's annual inflation rate doubled in August to its highest in nearly two years.

In an interview with radio station SRF, Schlegel acknowledged that this year's hot summer has had an effect on food prices, but emphasized that the rise in inflation is primarily due to petroleum products.

The SNB held its benchmark interest rate at 0% last Thursday despite other central banks hiking borrowing costs to combat rising inflation linked to expensive fuel. Schlegel expects inflation to decline after a temporary increase and remain within its 0-2% target range by mid-2029, when he believes the price of crude oil will decrease.