Swiss inflation rises at highest rate in a year as fuel prices increases

ZURICH, April 2 (Reuters) - Swiss inflation rose to its highest level in a year in March, government data showed on Thursday, as the country absorbed higher fuel costs triggered by the conflict in the Middle East.

Consumer prices rose by 0.3% last month, compared with March 2025, the highest rate since March 2025, but below the 0.5% rate expected by economists in a Reuters poll.

The March 2026 reading was an increase from the 0.1% rise in Swiss prices during February, and was driven by higher prices for petroleum products, which were 5.3% more expensive compared to a year earlier.

Prices for air transport and package holidays also increased, said the Federal Statistical Office, which compiles the data.

The Swiss National Bank declined to comment on the data.

Swiss annual inflation remains well below the 2.5% expected rate in the euro area, and means the SNB is thought unlikely to immediately hike interest rates to tackle price rises.

Markets currently give a 21% probability the central bank would increase borrowing costs from the current 0% at its next meeting in June.