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Swiss inflation rose to its highest level in nearly three years, driven by a sharp increase in oil prices and a weaker franc. The Swiss Federal Statistical Office reported on Tuesday that the October consumer price index (CPI) rose 1.5% year on year, up from 1% in September and above economists' expectations. Although the figure remains within the Swiss National Bank's 0% to 2% inflation target range, it is significantly higher than policymakers' forecast of 1.2% for the fourth quarter. Officials believe the acceleration in inflation is mainly temporary and said medium-term inflationary pressures have risen only slightly. The Swiss National Bank's policy rate has remained at the world's lowest level of zero for more than a year, partly because the cost shock triggered by the Iran war has had a relatively mild impact on Switzerland. Despite higher gasoline prices, energy accounts for a relatively small share of Switzerland's inflation basket, limiting its contribution to the overall inflation measure. The Swiss Federal Statistical Office said higher prices for heating oil, gasoline and diesel were the main drivers of inflation in October. Core inflation, which strips out volatile items such as energy, remained unchanged at 0.5%.