Inflation Rate In Switzerland Hits 12-Year High On Energy Prices - Bloomberg

Jan. 4 (Bloomberg) -- Swiss inflation unexpectedly accelerated to the fastest pace in more than 12 years in December, led by higher energy costs.

Consumer prices increased 2 percent from a year earlier after rising 1.8 percent in November, the Federal Statistics Office in Neuchatel said today. That's the highest rate since October 1995. Economists forecast it would be unchanged, according to the median of 14 estimates in a Bloomberg News survey.

A surge in oil prices to a record $100.09 a barrel yesterday is pushing up inflation just as a drop in the franc makes imports more expensive. Switzerland's central bank said last month it expects slowing economic growth to help curb price increases. The Swiss National Bank kept its key rate unchanged for the first time in two years last month at 2.75 percent.

``I'm a little bit shocked,'' said Janwillem Acket, chief economist at Julius Baer Holding AG in Zurich. ``There are risks that we'll see inflation rates of 2.5 percent in coming months, increasing pressure on the SNB to raise interest rates further.''

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