Swiss cabinet sees no need to cushion energy price rises

ZURICH (Reuters) – The Swiss government sees no immediate need for measures to help cushion the burden of surging energy prices and inflation, it said on Wednesday, noting the population should be able to handle the situation without undue hardship.

“The Federal Council (cabinet) is of the opinion that the price increases to date are bearable for households,” it said in a statement.

Still, it continued to analyse developments on energy markets and their impact on households and business and would assess the situation again after an energy price task force reported back in October, it added.

It noted that consumer price inflation of 3.4% in July was the highest in more than two decades but was much lower than in the eurozone and was set to fall next year from the average 2.5% to 3% economists expect this year.

The economy was also performing well and unemployment was low, it noted.

It said it would amend carbon rules so that companies urged or forced to switch energy sources from natural gas to heating oil amid looming winter gas shortages could have the additional emissions temporarily exempted from monitoring of emissions reduction obligations.

(Reporting by Michael Shields; Editing by Maria Sheahan)

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