SWITZERLAND DATA: Seasonal Adjusted CPI Data Shows Services, Domestic Above Lows

A rough seasonal adjustment of Swiss CPI data shows momentum in much eyed services and domestic categories remaining above their respective cycle lows despite some downside since the last SNB meeting in September. This supports the narrative that there is some room for further inflation downside before the SNB felt pressured to cut into negative territory.

• We calculate momentum as a 3m/3m annualized rate. For services, this stands at 0.76% (vs 1.33% before the SNB September meeting), and 0.36% for domestic inflation (vs 0.82% before the Sep meeting).