France Rates Hit 2002 High, Swiss Inflation Climbs

French borrowing costs surged to their highest level since 2002, widening the spread over German debt to a 14-year high as investors weighed political uncertainty and the government’s looming budget challenge. France’s producer prices also rose more than expected, pointing to continued cost pressures for manufacturers. In Switzerland, annual inflation accelerated to 1% in September, a little over a two-year high, driven in part by oil prices and a weaker franc; officials characterized the broader pressure as modest, and inflation remained within the Swiss National Bank’s target range. Swiss price increases were concentrated in transport, housing and energy, while food and clothing prices fell.