Swiss annual inflation rose to 1.5% in October while the franc strengthened against the dollar on Nov. 3, bringing price pressures into focus ahead of the central bank’s December policy decision.
Switzerland’s Federal Statistical Office said consumer prices increased 0.2% from September, when annual inflation was 1.0%. Market calendars had expected no monthly increase and a 1.3% annual rise. Both October readings exceeded those estimates. The consumer price index stood at 101.7, with December 2025 set at 100.
Heating oil, petrol, diesel and footwear became more expensive, as did outpatient hospital services, the statistics office said. Prices fell for medical services at local surgeries, international package holidays and hotel stays. The distinction between hospital and local surgery services matters because their prices moved in opposite directions.
The dollar fell to about 0.8149 Swiss francs in intraday trading on Nov. 3, currency data showed. A lower dollar-franc rate means one dollar buys fewer francs. FXStreet described the level as the dollar’s lowest against the franc in seven weeks. The available figures do not establish how much the inflation release contributed to the currency move.
October’s inflation rate remains within the Swiss National Bank’s definition of price stability, which requires annual inflation below 2% without sustained deflation. At its Sept. 24 decision, the bank kept its policy rate at 0% and said higher energy prices had been the main driver of the earlier rise in inflation.
The bank’s September forecast, made before the October data, put average annual inflation at 0.7% in 2026 and 0.8% in both 2027 and 2028. In March, Swiss National Bank Chairman Martin Schlegel said franc appreciation can reduce inflation from imports while dampening economic activity. EconoTimes previously covered the effects of franc strength on prices and growth.
Switzerland is scheduled to release November consumer prices on Dec. 2. The Swiss National Bank’s next policy announcement is set for Dec. 10.
