Switzerland’s Consumer Price Index was released this morning much higher than expected, indication that the country’s inflation has accelerated at a faster pace. The main reason behind the sharp increase is the surging oil prices.
On a year on year basis, CPI rose 1% compared to a previous 0.5% increase. Month to month, the index rose much higher than the expected 0.2 increase, to give a reading of 0.6% in March, versus 0.4% in February.
The CPI index is released by the Swiss Federal Statistics Office every month and measures the change in the price of goods and services purchased by consumers. It is a good indication of inflation and is important for currency valuation. A rise in inflation will lead the central bank to raise interest rates.
After release of the data at 8:15 GMT, the USDCHF pair plummeted over 85 pips to hit a low of 0.9159 from its pre-news level of 0.9245. EURCHF lost almost 130 pips from 1.3225 down to 1.3097.