Switzerland April CPI -1.1% vs -0.9% y/y expected

Latest data released by the Federal Statistics Office - 5 May 2020

• Prior -0.5%
• Core CPI -0.5% vs -0.2% y/y expected
• Prior -0.1%

This is a troubling sign for the SNB and it may prompt them to step in with other measures even before their June meeting. Sight deposits data in April rose by the most in five years, indicating that they are heavily intervening to limit franc strength but the threat of falling into protracted deflation is a rabbit hole that they may not want to travel down.