Swiss Inflation Accelerates in October

Switzerland's CPI rose above the 1 percent mark for the first time in more than a year in October, driven by higher costs for heating oil and clothing.

Consumer prices rose 1.3 percent from a year earlier after increasing an annual 0.7 percent the previous month. That's the biggest jump in the annual inflation rate since March 2004.

An 85 percent surge in oil prices since mid-January and the decline of the franc are pushing up prices in the Alpine economy. The Swiss central bank, which aims to keep the inflation rate below 2 percent, estimates price increases will average 0.6 percent this year and 1.5 percent in 2008.

Prices rose 0.9 percent from September. The cost of clothing and shoes rose 2.6 percent from a year earlier and jumped 19.2 percent from September, the release said. Heating oil is 13.1 percent more expensive than it was a year ago.

The franc was at 1.6708 against the euro at 10:45 a.m. in Zurich, little changed from yesterday, after rising to as much as 1.6671 earlier today. In euro terms, the currency is worth 13 percent less than at the end of 2002.

Swiss Inflation Accelerates in October, Bloomberg
11/2/2007 7:47:46 AM