Swiss National Bank chief Martin Schlegel said summer’s record heat and drought affected food prices but did not drive Swiss inflation; he attributed its rise almost entirely to petroleum products. The SNB is monitoring weather’s effect on food prices.
The SNB held its benchmark interest rate at 0% on Thursday. Schlegel said it expects inflation to fall after a temporary increase and remain within its 0%-2% target through its forecast horizon, which runs to mid-2029; he expects crude oil prices to decline.
Schlegel also described the franc’s recent decline as a minor counter-trend after long periods of near-constant appreciation.
