Inflation in Switzerland rises at the fastest pace in 2014 as fuel costs, with rents skyrocketing


Switzerland has become the latest country to face rising fuel and food prices. data Shown on Thursday by the Swiss government.

The consumer price index in May 2022 rose 0.7% month-on-month to reach 104.0 points.

Inflation rose 2.9% year-on-year due to higher housing rents, kerosene and transportation costs, according to Federal Statistics Bureau data.

Housing and energy increased by 4.3% from 0.6% last month, and transportation increased by 10.3% from 0.9% last month. On the other hand, kerosene increased by 5.1% from the same month of the previous year and increased by 81.9% from the same month of the previous year.

Many foods, like alcoholic beverages, clothing and footwear, have risen in price.

The latest figures show the highest rise in Swiss prices since September 2008. It was also the fourth straight month that prices exceeded the central bank’s target of 0-2% annual inflation.

On Tuesday, officials said the Swiss National Bank would need to act if faster inflation persists in the long run.

Schweizerische NatlBank Vice Chairman Fritz Zurbruegg Said Broadcaster TeleZüri believes that inflation will fall, and that most of the price increases are due to rising energy prices.

Zurbruegg also said he does not expect the Swiss economy to slow further, but said the central bank will consider how long Switzerland’s inflation will sustain when deciding on future monetary policy next month.

Speak in Events in Zurich That same day, Zurbruegg said: The amount of uncertainty is clearly higher than in the past, but it is a temporary factor driving inflation. “

The bank’s vice chairman also said that unlike the United States and Europe, there has never been a promotion of higher wages from Swiss citizens.

“If we fall into such a wage price spiral, it will obviously lead to a significant increase in the sustainability of high inflation,” he said.

“Another important point is inflation expectations. If you want to avoid this self-reinforcing process situation, it’s important for consumers to think about prices in five or ten years,” Zurbruegg said. Mr. says. “Here, there is still relatively little movement in Switzerland.”

UBS economist Alessandro Bee said he expects the Swiss Central Bank to wait until September after assessing the impact of the European Central Bank’s rate hike in July.

“The higher the number, the more we are concerned about inflation and the longer it takes to exceed 2%,” Bee said. Said.

Switzerland’s latest figures are due to US inflation remaining at its highest level in 40 years, with the April consumer price index rising 8.3% from 12 months ago. Ministry of Labor..

Jerome Powell, Chairman of the Federal Reserve Board, said: The Wall Street Journal On May 17, he said he would continue to raise federal interest rates until there was clear evidence that prices were falling “in a convincing way.”

However, experts warn that the US economy could go into recession in the next 12 to 24 months.

Catabella Roberts

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Katabella Roberts is a reporter currently based in Turkey. She focuses primarily on the United States and covers the news and business of The Epoch Times.

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