Swiss inflation soars data RT Business News
Business News
Swiss inflation soars data
The rate of price growth in the country is higher than the central bank is prepared to tolerate, the regulator says
Getty Images/Edwin Remsberg
Inflation in Switzerland unexpectedly accelerated in February largely due to soaring airfares, rent and energy costs, figures from the Federal Statistical Office showed on Monday.
Consumer prices surged 3.4% last month year-on-year and were higher than the median estimate by Bloomberg, which predicted a slower rate of 3.1%. The February jump reflected rising prices for air transport, package holidays, rents and gasoline, indicating that the countrys central bank will have to tighten its monetary policy, the media outlet said.
Core inflation in Switzerland excluding energy and food prices also accelerated for a third successive month and reached 2.4%, the data shows.
While Switzerland has managed to maintain the lowest pace of inflation among major European economies, persistent price growth will likely force the central bank to hike rates as underlying inflationary dynamics are stronger than what the SNB is prepared to tolerate, Swiss National Bank President Thomas Jordan said.
Tuesday, March 7, 2023 at 7:08 am