Speaking at the Kansas City Fed annual Jackson Hole symposium on Saturday, Swiss National Bank (SNB) President Thomas Jordan warned of persistently higher inflationary pressure.
“Structural factors such as the transition to a greener economy, rising sovereign debt worldwide, the demographic transition and ultimately also the fact that globalization appears to have peaked — at least temporarily — could lead to persistently higher inflationary pressure in the coming years”
“There are signs that inflation is increasingly spreading to goods and services that are not directly affected by the pandemic or the war in Ukraine”
“Higher prices are being passed on more quickly.”
“Inflation expectations “have also been moving upwards slightly.”
“A decline in global economic integration could increase companies’ price-setting power, meaning that they would be able to push through price increases more easily.”
USD/CHF was last seen trading at 0.9695, up 0.33% on the day. The broad US dollar strength remains the main underlying driver behind the pair’s upswing to six-week highs.