Inflation rises to a four-year high

The annual rate of inflation rate in Switzerland has risen to its highest level for four and a half years. At the end of July, it rose to two per cent, up from 1.9 per cent in June.

The federal statistics office in Neuchatel 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 in inflation was caused mainly in the accommodation and energy sectors caused by a rise in heating oil prices ( 70 per cent in a year), and 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 2 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 only likely to be a temporary phenomenon.

swissinfo with agencies