Swiss producer and import prices accelerated faster than expected in the month of August, reaching 0.4% from 0.2% the month prior. Furthermore, the annual rate of price growth also picked up to 3.1% from 2.9% in July. Index gains were the result of a 0.8% monthly increase in import prices, while production prices rose a more moderate 0.2%. The growth in the figure highlights the Swiss National Bank’s decision yesterday to raise their 3-month Libor target rate 25 basis points to 1.75% as the central bank forecasted inflation of “just under 3%” in 2006. – Terri Belkas
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