Swiss consumer price inflation in June hits 29-year high of 3.4%

Swiss consumer price inflation in June hits 29-year high of 3.4%

Swiss consumer price inflation touched a 29-year high of 3.4 per cent in June, more than economists had expected and the first time inflation in Switzerland has topped 3 per cent since 2008. The reading -- the fifth month in a row that inflation has risen above the Swiss National Bank’s 0-2 per cent target range -- fuelled talk that the central bank could soon tighten policy again after last month hiking its policy rate for the first time in 15 years. “The Swiss National Bankraised its policy rate from -0.75 per cent to -0.25 per cent in June and we think there is a good chance it will lift it into positive territory before the next scheduled meeting, in September - possibly after the imminent ECB rate rise, on July 21,” analyst David Oxley at Capital Economics wrote to clients. Prices rose 0.5 per cent versus May as fuel, heating oil and vegetables became more expensive. Prices for salads decreased. Core inflation that strips out volatile items like fuel and food prices rose 1.9 per cent. Ongoing inflationary pressure means further monetary policy tightening will likely be needed, Swiss National Bank Chairman Thomas Jordan said last month. “We published