Switzerland's annual inflation rate rose to its highest level in 16 months in April, driven by higher energy costs linked to the Middle East conflict, official data showed Tuesday.
Consumer prices increased 0.6% year-on-year in April, accelerating from a 0.3% gain in March, according to the Swiss Federal Statistical Office.
The figure was in line with market expectations, while all economists surveyed had anticipated an increase.
Petroleum products were among the main contributors to the rise in inflation, as the conflict in the Middle East continued to push up energy costs and affect prices in some other categories. Transport prices, which are heavily affected by rising energy costs, jumped 2.2% in April on a monthly basis.
Prices for vegetables and tropical fruits also posted strong increases, while potential rises in electricity bills are expected to affect consumers only next year due to local regulations.
Core inflation, which excludes energy, slowed to 0.3% in April, suggesting that broader price pressures have remained limited for now.
The latest figure marked the second consecutive acceleration in Swiss inflation, though the Swiss National Bank expects the cost spike to be temporary.
The central bank had been facing weak inflation before the Middle East conflict intensified, partly due to the strength of the Swiss franc, which reduces import costs and weighs on consumer prices.
The SNB expects inflation to average 0.5% in the second quarter, but the April reading suggests the rate could exceed that forecast unless price growth slows in the coming months.
Swiss inflation remains well below the euro area, where consumer prices rose 3% in April, the fastest pace since September 2023. On the European Union's harmonized measure, Switzerland's inflation rate stood at 0.5% in April.
