Swiss National Bank Links Food Price Hikes to Record Temperatures

Swiss National Bank Chairman Martin Schlegel attributes this year's record temperatures as the primary driver behind food price increases in Switzerland, not inflation. In an interview broadcast on September 26, Schlegel stated that the hot and dry summer has had a noticeable impact on food prices.

The SNB is closely monitoring how the weather affects food prices, with certain price movements visible. According to Schlegel, policy measures have been taken to counteract these effects.

The rise in inflation so far is almost exclusively attributable to petroleum products, Schlegel noted. He expects inflation to decline after a temporary increase and remain within the 0% to 2% target through the end of its forecast range, which runs to mid-2029.