SNB’s Schlegel Says Heat Hit Food Prices But Oil Drives Swiss Inflation

Schlegel's framing matters because it separates a visible climate-driven cost channel from the actual inflation driver, implying the SNB's near-term policy problem is imported energy rather than domestic weather shocks. That distinction shapes how much weight food-price volatility gets in Swiss policy, and it leaves the franc's recent softening as a secondary concern after prolonged appreciation. The open question is whether crude prices deliver the decline the SNB's projection assumes; if they don't, the path back to target through mid-2029 becomes harder to hold.