Driven by the sharp rise in oil prices and the weakening of the Swiss franc, the Swiss inflation rate rose to its highest level in nearly three years. Statistics Switzerland announced on Tuesday that the consumer price index rose 1.5% year on year in October, up from 1% in September, and also higher than economists' expectations. Although this figure is still within the 0% to 2% inflation target range set by the SNB, it is already significantly higher than policymakers' predictions of 1.2% for the fourth quarter. Officials believe that the acceleration in this round of inflation is mainly temporary, and indicated that inflationary pressure increased only slightly in the medium term. The SNB interest rate has remained the lowest in the world at zero for more than a year, partly because the cost shock caused by the Iran war had a relatively mild impact on Switzerland. Despite the rise in gasoline prices, energy accounts for a relatively low share of the Swiss inflation basket, so it has limited impact on overall inflation indicators. Statistics Switzerland said that the rise in heating oil, gasoline and diesel prices in October was the main factor driving inflation. Excluding highly volatile projects such as energy, the core inflation rate remained unchanged at 0.5%.

Driven by the sharp rise in oil prices and the weakening of the Swiss franc, the Swiss inflation rate rose to its highest level in nearly three years. Statistics Switzerland announced on Tuesday that the consumer price index rose 1.5% year on year in October, up from 1% in September, and also higher than economists' expectations. Although this figure is still within the 0% to 2% inflation target range set by the SNB, it is already significantly higher than policymakers' predictions of 1.2% for the fourth quarter. Officials believe that the acceleration in this round of inflation is mainly temporary, and indicated that inflationary pressure increased only slightly in the medium term. The SNB interest rate has remained the lowest in the world at zero for more than a year, partly because the cost shock caused by the Iran war had a relatively mild impact on Switzerland. Despite the rise in gasoline prices, energy accounts for a relatively low share of the Swiss inflation basket, so it has limited impact on overall inflation indicators. Statistics Switzerland said that the rise in heating oil, gasoline and diesel prices in October was the main factor driving inflation. Excluding highly volatile projects such as energy, the core inflation rate remained unchanged at 0.5%.