Swiss Inflation Reaches Two-Year High as Oil Prices Rise

(MENAFN) Switzerland’s annual inflation rate rose to 1% in September, reaching its highest level in two years as increased petroleum prices pushed consumer costs higher, according to figures released Thursday by the Federal Statistical Office.

The September reading increased from 0.8% in August, while higher petroleum costs were partly offset by declines in clothing and footwear prices.

Core inflation, which excludes volatile components such as energy, also edged higher to 0.5% from 0.4%, marking its second monthly increase in a row.

Using the harmonized European calculation, Switzerland recorded an annual inflation rate of 1.2% in September.

The data came after the Swiss National Bank kept its policy rate at zero on Sept. 24, saying medium-term inflationary pressures had risen only modestly.

The central bank said the recent increase in inflation was mainly driven by higher energy costs. It also noted that a weaker Swiss franc had pushed its medium-term inflation projection slightly higher.

The SNB expects inflation to increase further during the fourth quarter before slowing in 2027 as pressure from energy prices diminishes.

Its latest forecast estimates average annual inflation at 0.7% in 2026, followed by 0.8% in both 2027 and 2028, based on the assumption that the policy rate remains at zero throughout the projection period.

The central bank also warned that uncertainty linked to the Middle East could cause energy prices to rise well beyond current expectations, potentially adding to inflationary pressures while weighing on economic growth.

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