Economic data released this morning showed inflation in Switzerland hits a 29-year high. The Consumer Price Index rose 3.4%, exceeding market expectations.
It is worth noting that it is the first time that inflation rates have risen above 3% levels since 2008, and the fifth consecutive month that prices have risen above the target set by the Swiss national bank at 2%.
On the back of concerns about high inflation in Switzerland due to rising prices in most countries of the world, the Swiss National Bank began tightening monetary policy and raised interest rates at the last meeting for the first time in 15 years by 50 basis points from -0.75% to -0.25%.
Monthly, the CPI rose by 0.5%, supported by higher fuel and food prices. Excluding food and energy, year-on-year CPI rose by 1.9%.