Swiss inflation rises to 1.5%, highest since December 2023, on energy costs

Swiss annual inflation rose to 1.5% in October from 1.0% in September, the highest since December 2023, the statistics office said Tuesday. Imported product prices increased 3.7% year over year, up from 2.1%, while energy and fuel costs rose 16%, up from 12%, as oil prices climbed amid uncertainty over the Middle East war. The print is above the midpoint of the SNB's 0%-2% target range for the first time since August 2024. The franc rose against the euro after the data; it had been declining against the euro since May before gaining again in October. The SNB had earlier worried the franc could appreciate uncontrollably after the war in Iran broke out if investors sought a safe haven. A stronger franc makes imports cheaper but makes Swiss exports less competitive. Unlike other central banks that have raised rates in response to energy prices, the SNB is expected by investors to keep its k