Inflation in Switzerland last month reached its highest level since 1993. At 2.9 per cent, it was markedly higher than the April rate of 2.3 per cent.

The increase, which exceeded expectations, is largely attributed to high fuel prices.

Heating oil, for example, cost 16 per cent more in May than in April, and consumers are now paying 60 per cent more for this basic product than this time last year.

The notional upper limit for price stability of two per cent inflation, set by the Swiss National Bank, has been breached every month this year.

On June 19 the bank will decide whether to cut interest rates, possibly making a move to cool the economy.

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