Inflation in Switzerland reached its highest level in 29 years in June.
Inflation increased from 2.9 percent in May to 3.4 percent in June, exceeding the Swiss National Bank’s 2 percent target. Officials stated that Russia’s invasion of Ukraine was the most significant factor in accelerating inflation.
Due to increasing inflationary pressures, the Swiss National Bank surprisingly increased interest rates two weeks ago to minus 0.25 percent. President Thomas Jordan stated that inflationary pressures remain high and that there may be another rate hike if necessary.
The bank’s annual inflation forecast is 2.8 percent, 1.9 percent for next year, and 1.6 percent for 2024.