Swiss Inflation Hits Two-Year High of 1% on Oil Prices, Weaker Franc

Switzerland's inflation accelerated to a two-year high in September, driven by stronger oil prices and a weaker franc. Consumer prices rose 1% year-over-year, matching Bloomberg survey estimates and exceeding August's 0.8% reading, the statistics office said Thursday. The figure remains within the Swiss National Bank's 0-2% target range. Core inflation, excluding volatile items like energy, edged up to 0.5% from 0.4%. The SNB has held borrowing costs at zero for over a year, the world's lowest level. Under harmonized European methodology, Swiss inflation was 1.2% in September, far below the euro area's expected 3.7%. Higher petroleum product costs were partially offset by lower clothing and footwear prices. The SNB last week reduced its intervention threat after actions to weaken the currency, which economists view as a shift toward greater price vigilance. Most economists don't expect rate hikes before 2028, though some see a possible move as early as December.