Switzerland's inflation unexpectedly eased in October, putting pressure on the Central Bank to respond to a strong Swiss franc.

Jin10 data reported on November 3rd, Swiss inflation unexpectedly slowed to nearly zero levels, putting pressure on the Central Bank and forcing it to take measures to deal with the strong Swiss franc and drive price rise. Data shows that the October CPI rose by 0.1% year-on-year, down from 0.2% the previous month and below the market expectation of 0.3%. One urgent issue facing the Swiss Central Bank is that the safe-haven status of the Swiss franc has pushed it to nearly its highest level in a decade, and this strength could suppress inflation by lowering import costs. Core inflation also unexpectedly slowed last month, dropping from 0.7% to 0.5%. The latest data will frustrate Swiss Central Bank President Schlegel and other officials who had predicted that inflation would accelerate by the end of this year and early 2026. The failure of price rise to rebound from the lower limit of the 0-2% target range will complicate the task for policymakers facing the strong Swiss franc. The Swiss Central Bank can choose to intervene in the forex market, which would expand its balance sheet and anger the United States, or adopt a negative interest rate policy, but this could harm the financial system.