The beginning of the year in Switzerland saw consumer price inflation accelerating again, mostly attributable to the rise in food and energy prices, according to new data from the Federal Statistical Office, released on Monday.

In January, inflation was up 3.3% year over year, as gas and electricity prices soared. The rate beat economist’s forecasts of 2.9% and was the highest reading seen since August of 2022. Monthly, consumer prices were up 0.6% over the previous month.

The annual rise in inflation was attributed mostly to a 5.6% increase in the prices for food and non-alcoholic beverages. Housing and energy prices were also up 5.1% as public transport prices rose 4.7% year over year. Gas prices surged a staggering 40.3% in January year over year, as electricity surged 25.5%, according to the statistics service.

Utility providers hiked rated as the year started, offloading their increased costs onto consumers. Switzerland’s state regulator, ELCOM, had predicted last year that on average, Swiss households would see electricity rates rise by 27.5%.

The harmonized Swiss index of consumer prices increased 0.7% over the previous month, and by 3.2% annually according to the data.

In an attempt to counter rising inflationary pressures, the Swiss National Bank has hiked interest rates over the three previous meetings, however in the face of energy price hikes of this magnitude, it has yet to take effect.

The central bank predicts inflation will slow to 2.4% this year, and to 1.8% in 2024. It is projected that the economy will increase by about 0.5% in 2023, as global demand remains weak.