SNB Chairman Expects Swiss Inflation to Pick Up

Swiss National Bank Foresees Rising Inflation Trends

By John Revill

ZURICH, Feb 24 (Reuters) - Switzerland may see negative inflation in some coming months, but that would not be cause for alarm with the Swiss National Bank focussing on mid-term price developments, SNB Chairman Martin Schlegel said on Tuesday.

SNB's Inflation Outlook

Speaking at an event in Zurich, Schlegel said the SNB, which targets an inflation rate of 0-2%, expected inflation to move higher in the months ahead.

It was possible there could be some months with negative readings, Schlegel said. "But a few months is not an alarm signal. We look at price stability over the mid-term," he added.

Earlier this month Schlegel said that a combination of low inflation and the central bank's current policy rate of 0% put the SNB in a tight spot.

Current Inflation Status

Swiss inflation has remained low at the start of 2026, with a reading of 0.1% in January at the bottom end of the SNB's target range for annual inflation.

During the event, Schlegel noted that inflationary pressures in Switzerland have barely changed.

The central bank chief also said that U.S. tariffs and uncertainty have weighed on global economic growth, but many parts of the economy have proved more resilient than expected.

Impact of Global Tariffs

Schlegel said about one in four Swiss companies surveyed by the central bank have been negatively affected by the tariffs. Nearly one in ten companies, mainly engineering firms, are feeling significant negative effects, he noted.

Some companies consulted had begun to relocate parts of their manufacturing to countries with lower U.S. tariffs or to the United States, but many companies had not decided on any measures yet, Schlegel said.

(Reporting by John RevillEditing by Dave Graham)