Inflation moves to 12-year high in December

Swiss consumer prices rose by two per cent in December compared with a year ago and were 0.2 per cent higher than in November, figures released on Friday show.

This content was published on January 4, 2008 - 08:48

The Federal Statistics Office reported that the average inflation rate for 2007 was at 0.7 per cent compared with 1.1 per cent in 2006, the office said.

In a statement, it said that the year-on-year price in December was the highest since October 1995 when the annual rate had also been two per cent.

Prices rose in nearly all categories in December, it observed, with those for domestically produced goods increasing by 0.2 per cent compared with November and were 0.4 per cent higher for imported products.

Over the year domestic goods posted a price increase of 1.2 per cent, while costs for imported goods were 4.1 per cent higher.

Economists had predicted a consumer price inflation rate of 1.8-1.9 per cent.

The Swiss National Bank, which left its benchmark interest unchanged at 2.75 per cent in December, expects the average inflation rate to rise to 1.7 per cent in 2008, driven in particular by higher oil prices.

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