Swiss inflation reaches two-year high of 1.0% in September as oil prices jump 31.2%
Switzerland's annual inflation rate climbed to 1.0% in September 2026, driven by rising petroleum costs while the Swiss National Bank kept its policy rate steady at 0.0%.
Inflation reaches two-year high
Swiss annual inflation accelerated to 1.0% in September 2026, up from 0.8% in August, according to data released on Thursday by the Federal Statistical Office. The reading marks the first time that consumer price growth reached 1.0% since August 2024. At the start of the year, annual inflation stood at 0.1%, after which the measure hovered between 0.3% and 0.6% before accelerating in late summer. The September figure matched the exact midpoint of expectations in an AWP survey of economists, where forecasts ranged from 0.7% to 1.2% on an annual basis and from -0.3% to +0.2% compared to August. Even with the increase, price growth remains within the national price stability framework.
Energy costs drive divergence across sectors
The acceleration in consumer prices was led by petroleum products, which recorded a 31.2% increase compared to the same period in 2025. Higher prices for heating oil, petrol, and diesel pushed overall import prices up by 2.1% year-on-year, while domestically produced goods recorded a 0.7% increase. Core inflation, which excludes fresh and seasonal goods, energy, and motor fuels, rose more moderately to 0.5% in September from 0.4% in August. On a month-on-month basis, consumer prices remained unchanged, holding the national consumer price index at 101.5 points. Monthly increases in heating and vehicle fuels were balanced by price reductions in services, including international package holidays, hospitality, car rentals and car sharing (down 14.2%), and supplementary accommodation (down 11.2%).
- Petroleum products
- 31.2 %
- Imported products
- 2.1 %
- Domestic products
- 0.7 %
- Core inflation
- 0.5 %
- Parahotellerie
- -11.2 %
- Car rentals and car sharing
- -14.2 %
Central bank leaves interest rates at zero
The Swiss National Bank (SNB) views the current inflation rate as consistent with its mandate of price stability, which it defines as an annual rate between 0% and 2%. Under SNB Governing Board President Martin Schlegel, the central bank held its benchmark policy rate at 0.0% during its quarterly monetary assessment the prior week. The decision marked the fifth consecutive quarterly review in which borrowing costs were kept steady, following six successive interest rate cuts between 2024 and 19 June 2025. Speaking at a press conference in Bern, Schlegel observed that inflation in Switzerland remains relatively low compared to other European nations where rates exceed 3%. He added that the central bank expects inflation to increase slightly in the fourth quarter before declining over the course of 2027.
- Swiss annual inflation last exceeds 1.0% before entering a prolonged easing phase
- Swiss National Bank carries out its sixth interest rate reduction, lowering the policy rate to 0.0%
- Annual consumer price inflation rises to 0.8% after months between 0.3% and 0.6%
- Annual inflation reaches 1.0%, driven by a 31.2% increase in petroleum product prices
Projections and household cost pressures
Economic forecasters project that price increases will remain contained across the coming two years. The SNB recently revised its annual inflation projection for 2026 up to 0.7% from an earlier 0.6%, and raised its 2027 forecast to 0.8% from 0.6%. In contrast, the KOF Swiss Economic Institute at ETH Zurich projected an inflation rate of 0.6% for both 2026 and 2027. The Zurich institute evaluated the impact of rising oil costs in its forecast release.
Energy price increases temporarily exert additional pressure on prices, but second-round effects have so far remained limited.
Despite the moderate macroeconomic figures, Swiss households face rising autumn expenditures, driven by higher health insurance premiums, persistent fuel costs, and steady housing expenses.
