Inflation in Switzerland stayed low in September, with a year-on-year increase of 1%, according to data released by the Federal Statistical Office (OFS) on Thursday. This marked a slight increase from the 0.8% recorded in August, driven mainly by rising prices for petroleum products. Imported goods saw a 2.1% increase in prices compared to the same period last year, with petroleum products rising sharply by 31.2%. Prices for Swiss-made goods increased by 0.7%, while underlying inflation—measured without energy and seasonal products—was at 0.5%. For the month, the consumer price index remained unchanged at 101.5 points, despite some fluctuations in specific sectors. The OFS noted that while prices for diesel, gasoline, and other fuels increased, these were offset by lower prices in areas such as international travel packages, car rentals, and hospitality services compared to August. This mix of rising and falling prices helped keep the overall inflation rate stable for the month. Economists surveyed by the Swiss agency AWP predicted annual inflation would range between 0.7% and 1.2% for the year, with a monthly change expected to be between -0.3% and +0.2% compared to August. The Swiss National Bank (BNS) recently adjusted its inflation forecasts slightly but kept its key interest rate unchanged at 0%. BNS President Martin Schlegel stated that inflation in Switzerland remains "relatively low compared to international standards." He anticipates a slight increase in inflation during the fourth quarter of 2024 but expects it to decline again by 2027. The BNS raised its inflation forecast for 2026 to 0.7% (from the previously expected 0.6%) and to 0.8% for 2027 (from 0.6%). The Zurich Institute for Economic Research at the Federal Institute of Technology in Zurich also expects 0.6% inflation for both 2026 and 2027. The institute noted that higher energy prices are temporarily increasing inflation, but the broader economic effects have remained limited. It expects the BNS to raise its key interest rate by 0.25 percentage points at its next meeting in December, but to keep it unchanged afterward.