SNB Chairman Thomas Jordan said over the weekend, “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.”
“In fact, it appears that in the current environment, higher prices are being passed on more quickly — and are also being more readily accepted — than was the case until just recently,” he added.
Inflation expectations “have also been moving upwards slightly” and wage growth is “gathering momentum,” Jordan said, cautioning that the “longer-term outlook for monetary policy is also subject to high uncertainty.”
“In particular, 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,” he said.
