Inflation hits 15-year high

Inflation in Switzerland has hit a 15-year high in July as soaring oil prices drove up costs for transport and energy.

The consumer price index fell 0.4 per cent from June as retailers slashed prices for clothes and shoes in summer sales, but annual inflation picked up to 3.1 per cent, the Federal Statistics Office said on Thursday.

The last time inflation was higher was in 1993, when it stood at 3.4 per cent.

The statistics office said prices for transport, housing and energy, alcohol and tobacco as well as communication rose on the month in July.

Costs for heating oil are now 67 per cent above the level of July 2007 and fuel prices have risen nearly 12 per cent within the past 12 months.

Core inflation excluding food, tobacco, beverages, energy and seasonal products remained unchanged at 1.2 per cent in July and at 1.6 per cent when also taking out administered prices.

The Swiss National Bank left its target rate for the three-month Libor rate (London Interbank Offered Rate) unchanged at 2.75 per cent at its meeting in June, saying the cooling of the economy should dampen inflation in the coming months.