Inflation driven higher by rising fuel and accommodation costs

The annual rate of inflation rate at the end of July in Switzerland rose slightly against the previous month to reach two per cent. In June, the figure was 1.9 per cent.

The Federal Statistics Office in Neuchâtel reported that the annual inflation figure a year ago was only 0.7 per cent.

It added that the consumer price index, calculated according to a new system since May, rose by 0.2 per cent in July compared to the previous month to reach 100.6 (May 2000 = 100).

The Office indicated that the rise was driven by higher costs in the accommodation and energy sectors caused by a rise in heating oil prices, and to higher transport costs.

It said the level of prices for domestic products remained stable in July compared to June but rose by 0.7 per cent for imported goods.

In annual terms, domestic products have increased by 0.8 per cent in price, while imported goods have shown a rise of 5.7 per cent.

At a news conference in June, the Swiss National Bank said that since the current expansion of the Swiss economy outstripped its production potential, a rise in inflation to a rate of two per cent in the coming year would be practically unavoidable.

However, the president Hans Meyer said that according to the Bank’s inflation forecast, the rise was likely to be a temporary phenomenon only.

swissinfo with agencies