Swiss inflation rises due to air fares, rents and petrol
Consumer prices increased 3.4% in February from a year earlier, the Federal Statistical Office reported on Monday. This raises the possibility that the Swiss National Bank will raise interest rates this month.
Consumer prices were up from 3.3% in January and well above the Swiss National Bank (SNB) target range for price stability, defined as between 0-2%.
Prices rose 0.7% month-on-month due to various factors, the FSO said.
“These include rising prices for air transport, package holidays and supplementary accommodation. Housing rentals also recorded a price increase, as did petrol,” it said.
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The central bank is due to announce its policy decision on March 23, with the market seeing a 91% probability of a 50 basis point increase from the current level of 1%, especially following recent weakening of the Swiss franc, which has helped limit price rises from costlier imports.
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