Switzerland's annual inflation rate rose in June, but remained near deflation levels, highlighting the possibility that the SNB will cut interest rates below zero later this year. Statistics Switzerland said on Thursday that the consumer price index rose 0.1% in June compared to the same period last year, while the annual inflation rate in May was -0.1%. The SNB cut the benchmark interest rate to zero last month in an attempt to curb demand for the Swiss franc. The rapid appreciation of the Swiss franc weakened demand for Swiss exports, including luxury watches and pharmaceuticals. Since the beginning of this year, the Swiss franc has appreciated nearly 15% against the US dollar, depressing the prices of imported goods and services and driving a downward spiral in inflation.

Switzerland's annual inflation rate rose in June, but remained near deflation levels, highlighting the possibility that the SNB will cut interest rates below zero later this year. Statistics Switzerland said on Thursday that the consumer price index rose 0.1% in June compared to the same period last year, while the annual inflation rate in May was -0.1%. The SNB cut the benchmark interest rate to zero last month in an attempt to curb demand for the Swiss franc. The rapid appreciation of the Swiss franc weakened demand for Swiss exports, including luxury watches and pharmaceuticals. Since the beginning of this year, the Swiss franc has appreciated nearly 15% against the US dollar, depressing the prices of imported goods and services and driving a downward spiral in inflation.