Consumer prices increased by 0.1% in October 2023, reported Switzerland’s Federal Statistical Office (FSO) this week. Rising prices in October represent a reversal of the 0.1% fall in September 2023.
October’s rise in inflation kept the annual rate of inflation at 1.7%, 0.3 percentage points below the Swiss National Bank’s (SNB) preferred maximum of 2% – the SNB equates price stability with a rise in the Swiss consumer price index (CPI) of less than 2% per annum. The last time Swiss inflation was above 2% was in May 2023 (2.2%). It’s highest point over the last 20 years was in August 2022 (3.5%).
October’s 0.1% monthly increase is due to several factors including rising prices for heating oil and air transport. Women’s coats and jackets also recorded a price increase, as did foreign red wine. In contrast, prices for hotels and petrol decreased, as did those for fruit and vegetables.
On 21 September 2023, the SNB decided to keep the interest rate at 1.75%, despite a widely held expectation that the rate would be lifted to 2.00%. The next rate decision will be taken in December 2023.