Switzerland’s annual inflation rate rose to 1.0% in September 2026 from 0.8% in August, reaching its highest level since August 2024 and its fastest pace of increase in two years. Higher oil prices and a weaker Swiss franc raised energy and import costs, while the 10-year Swiss government bond yield climbed above 0.6% after hitting a one-week low amid a broader bond selloff. Inflation remained within the Swiss National Bank’s 0%-2% target range and relatively subdued compared with other European economies. The SNB kept its policy rate at 0% at its September meeting, extending the world’s lowest borrowing costs for more than a year while reducing its emphasis on currency intervention. Most economists expect rates to remain unchanged through 2027, although markets price in a rate increase by year-end and roughly three hikes by the end of 2027.