Swiss Inflation Hits 29-Year High on Ukraine War, Supply Chains

(Bloomberg) — Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

Most Read from Bloomberg

Bezos Slams Biden Over Call for Lowering of Gas Prices
Long, Moderate and Painful: What Next US Recession May Look Like
US Court Ruling May Take 70,000 Truckers Off Road, Spur Jams
JPMorgan Sees ‘Stratospheric’ $380 Oil on Worst-Case Russian Cut
Germany’s Union Head Warns of Collapse of Entire Industries

Inflation in Switzerland accelerated to the fastest pace in nearly three decades, hitting 3.4% in June.

The pace is up from 2.9% in May, and well above the Swiss National Bank’s 2% target. Based on the European Union-harmonized measure, it was at 3.2%, compared with 8.6% in the surrounding euro area.

Russia’s war with Ukraine has been a “significant factor” in the acceleration of prices in Switzerland, as are persistent supply-chain bottlenecks, according to the SNB.

The development comes two weeks after the central bank unexpectedly raised its monetary policy rates to -0.25% in order to help counter increased inflationary pressures. SNB chief Thomas Jordan said then that inflationary pressures remain high and officials may have to hike again.

The central bank’s June forecast for inflation is 2.8% this year, 1.9% in 2023 and 1.6% in 2024.