Swiss inflation rose, SNB reserves down

Consumer price pressure in Switzerland rose in June on a monthly basis and fell less than expected on annual basis, due to higher oil, fruit and vegetable prices. Inflation fell 0.1% from a year earlier, after dropping 0.5% in May, the nation's statistics office said. Economists, compared to expected annual decline of 0.4%. At the same time, consumer prices jumped 0.1% in June from a month earlier, from the same reading in May. The cost of imported goods tumbled on annual and monthly basis by 1.5% and 0.2%, respectively. Meanwhile, price of domestically produced goods rose 0.3% on the year, and were 0.1% higher on the month. 

In a separate report the Swiss National Bank said that its foreign-currency reserves fell last month, as the Swiss Franc appreciated against both the Euro and the greenback. Holdings dropped to 434.9 billion francs, down from a revised 444.1 billion francs recorded in May. Since September 2011, when the SNB has imposed a ceiling of 1.20 per Euro, it has amassed foreign-currency reserves, which are equal to around 75% of the nation's annual economic output, as a result of its efforts to defend the cap. Earlier this month, the SNB's President Jordan claimed bank's readiness to continue making market interventions if necessary to prevent deflation and avoid falling into a recession.