The combined producer and import price index rebounded in April. A 0.4 percent monthly rise more than reversed March's 0.2 percent drop and lifted the annual inflation rate from 2.0 percent to 2.7 percent, a multi-year high.
However, the monthly headline increase was (again) largely attributable to import prices which advanced fully 0.8 percent and now stand 5.1 percent higher on the year. By contrast, domestic producer prices gained only 0.2 percent for a more subdued annual rate of 1.5 percent.
Within the PPI, the main boost to the monthly change came machines (1.3 percent) ahead to electrical equipment (0.9 percent) and metals (0.6 percent). However, petrol (8.3 percent) also provided a significant lift and the same category was worth more than half the increase in overall import charges.
Even so, a 0.3 percent rise in the core composite index lifted the yearly underlying inflation rate by 0.4 percentage points to 1.8 percent, also a multi-year peak. The recovery here is in line with signs of a strengthening economic upswing but, for now, the SNB must still be concerned about the relative weakness of domestically generated price pressures.