Inflation in Switzerland accelerated in June to 3.4% year-on-year from 2.9% in May, driven by a rise in oil products, the Federal Statistics Office (SFO) said on Monday.
The prices of imported goods increased by 8.5 percent year-on-year in the last month, oil products by 48.4 percent, according to the OFS report. The prices of goods produced in Switzerland increased by 1.7%. This jump in inflation in June tops the forecast range of economists polled by the Swiss agency AWP. Their estimates were 2.8-3.5 percent. From one month to the next, compared to May, inflation in Switzerland increased by 0.5%, which is due to the increase in fuel, heating oil and certain vegetables, the OFS details. The consumer price index rose to 104.5 points.
Inflation in Switzerland is lower than in other countries. For comparison, the growth of prices in the euro zone in June was 8.6% year-on-year, according to Eurostat, the European statistical service. After being capped at 0.6% in 2021, inflation in Switzerland accelerated month-on-month and crossed the 2% mark in February, surpassing the Swiss central bank’s target for the first time. After rising 2.4% in March, it rose to 2.5% in April and 2.9% in May. In mid-June, the Swiss central bank surprised by unexpectedly tightening its monetary policy in an attempt to combat inflation. While its key interest rate remains in negative territory, it raised it by half a point to -0.25%, aiming to prevent a flare-up in inflation. He raised his inflation forecast for 2022 to 2.8 percent, up from the previously expected 2.1 percent.
The Economy Ministry also raised its estimate in mid-June, expecting inflation to reach 2.5% in 2022, up from a previously estimated 1.9%. In its annual report, the Bank for International Settlements (BIS), considered the central bank of central banks, called for inflation not to take root. The Basel-based Swiss institution warned of the risk of stagflation on the global economy, saying central banks must act “decisive» and: “without delay“.
Source: Le Figaro
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