Swiss Franc Weakens as Inflation and Manufacturing Data Miss Expectations

The Swiss Franc weakened following soft inflation and manufacturing data in July. Consumer prices rose by just 0.4% year-on-year, marking the slowest pace of growth since March.

The annual core inflation rate held steady at 0.3%, while consumer prices slipped by 0.1% on a monthly basis, the first contraction in six months. This trend suggests that Swiss inflation may continue to undershoot the expectations of the Swiss National Bank (SNB).

Nomura strategists highlighted that car fuel prices contributed to the slowdown in Swiss inflation, reinforcing the recent disinflationary trend.

The manufacturing PMI also fell to 53.2 in July from 54.3 in June, missing market expectations of 55.0 and recording its lowest level since February.