Switzerland's headline CPI still lagging core CPI

SNB is weighed on by the rate cut expectations from ECB in December. The bank is pressurized to intervene in CHF's appreciation. USD/CHF is currently at 0.9916, while EUR/CHF is at 1.0849.

As per Swiss Federal Statistical Office dats, Inflation Rate in Swiss averaged 2.52% from 1956 until 2015, reaching a record low of -1.40% in August of 2015. 

The headline CPI is lagging core CPI by 0.7ppts in Q3 2015, and this gap is consistent from March. This is expected to reduce over months to come unless pick up is seen in the oil prices.

"Domestic sight deposits stabilised in October around CHF400bn. The trade surplus widened in September to bn due to a 0.2% rebound in exports", says Societe Generale.