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Inflation reaches 14-year high

Switzerland's annual consumer price index climbed to its highest level in 14 years in January, rising 2.4 per cent over 12 months, driven by high oil costs.

This was the first time that it had passed above the Swiss National Bank’s (SNB) two-per-cent price stability threshold since the middle of 1995.

An increase had been widely expected but the final figure released by the Federal Statistics Office was higher than anticipated by analysts.

The inflation figure means that the SNB is unlikely to cut its main interest rate at its next meeting in March, according to economists.

The three-month Swiss franc Libor (London Interbank Offered Rate) target is currently 2.75 per cent.

Economists say they now expect the inflation rate to ease as exports slow down this year.

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