Switzerland’s producer and import prices stayed at -2.7% year on year in March. This means the combined index remained lower than a year earlier.
The reading was unchanged from the previous result. The figure continues a run of negative annual rates.
Producer and import prices track price changes for goods made in Switzerland and goods brought in from abroad. The measure is often used to gauge price pressure earlier in the supply chain.
The unchanged producer and import price figure of -2.7% for March confirms that disinflationary forces are deeply entrenched in the Swiss economy. This is not a new development but a continuation of a trend, signalling that the Swiss National Bank will remain under significant pressure to maintain a dovish stance. We must interpret this as a green light for trades that benefit from lower interest rates.
With core consumer inflation barely positive, last reported at only 0.6% for March 2026, the SNB’s path is becoming clearer. Looking back at how they preemptively cut rates in late 2025, this persistent price weakness increases the odds of another cut by their June meeting. Therefore, positioning in derivatives that anticipate lower short-term rates, such as receiving the fixed leg on Swiss franc interest rate swaps, appears to be a sound strategy.
This policy divergence makes the Swiss franc an attractive currency to short against others. For example, the European Central Bank is holding rates firm as Eurozone inflation stubbornly sits at 2.3%, well above the SNB’s concerns. This makes long EUR/CHF positions, possibly through call options to limit downside risk, a compelling trade over the coming weeks.
For Swiss equities, this news is decidedly positive. A weaker franc is a direct benefit to the large multinational exporters that dominate the Swiss Market Index (SMI), boosting their foreign earnings. The combination of a weaker currency and the prospect of sustained low borrowing costs should provide a tailwind for the SMI, suggesting long index futures are a logical play.
