Swiss Franc Extends Drop Versus Euro as Inflation Holds at 2.9%

By Lukanyo Mnyanda

July 3 (Bloomberg) -- The Swiss franc extended declines against the euro and dollar after a government report showed inflation accelerated less than economists forecast in June.

Swiss consumer prices rose 2.9 percent from a year earlier after increasing the same amount in May, the Federal Statistics Office in Neuchatel said today. That's the highest rate since October 1993. Economists forecast an acceleration to 3.1 percent, according to the median of 20 estimates in a Bloomberg News survey. From May, prices climbed 0.2 percent.

Against the euro, the franc fell to 1.6128 by 7:50 a.m. in Zurich, from 1.6103 yesterday. It also dropped to 1.0165 versus the dollar, from 1.0140.

To contact the reporter on this story: Lukanyo Mnyanda in London at lmnyanda@bloomberg.net