Swiss inflation ticks up to 3.5% in August
ZURICH, Sept 1 (Reuters) - Swiss consumer price inflation rose a higher-than-expected 3.5% in August, the seventh month in a row that inflation has surpassed the Swiss National Bank's 0-2% target range.
Economists had expected the year-on-year rate to hold steady at July's 3.4%, the same as the 29-year high touched in June.
The reading comes amid expectations that the central bank could soon tighten policy again after hiking its policy rate in June for the first time in 15 years.
The index rose 0.3% versus July given higher prices for inpatient hospital services and housing rents. Prices for renting private transport, laboratory analyses and fuel fell.
Core inflation that strips out volatile items like fuel and food prices rose 0.3% versus July and 2.0% year on year.
Ongoing inflationary pressure means further monetary policy tightening will likely be needed, Swiss National Bank Chairman Thomas Jordan has said. The SNB holds its next quarterly policy review on Sept. 22.
The SNB has signalled it is prepared to see the Swiss franc strengthen as a way to choke off imported inflation, a departure from the campaign it waged for years to rein in the safe-haven currency whose strength hurts the export-reliant economy. (Reporting by Michael Shields; Editing by Simon Cameron-Moore)
