Life has become more expensive in Switzerland – despite low inflation

The products are significantly more expensive than they were a few years ago. Keystone / Christian Beutler

Inflation is forecast to be just 0.2% in 2025. And yet many people feel the pinch: prices in Switzerland are around 7% higher than five years ago, putting pressure on household budgets.

Higher prices: According to the consumer price index, the overall price level has risen by 7% over the past five years. The index tracks the cost of the most important goods and services households need. Such an increase is unusual for Switzerland, where prices were largely stable between 1994 and 2021.

The recent surge means many households are having to cut back. Those who did not receive inflation compensation through wages are particularly affected, unless they were able to save during better years.

Housing is the main burden: Housing is by far the largest expense. On average, households spend around 27% of their budget on rent and ancillary costs. It is also the most heavily weighted component of the consumer price index.

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An analysis by SRF shows that the category “housing and energy” has become 15% more expensive over the past five years. Rising rents and higher ancillary costs are among the biggest financial concerns for people in Switzerland.

Homeowners are also paying more: Higher costs are not limited to tenants. Homeowners, too, are paying more. Prices for electricity, heating oil, gas and district heating have risen by 47% over the same period. The war in Ukraine triggered a sharp rise in energy prices, while costs for repairs and maintenance have also increased.

Rents have risen by 10% within five years. Energy and repairs have also become more expensive. Keystone / Ennio Leanza

More expensive restaurants: Eating out and leisure activities have become noticeably more expensive. Restaurants, hotels, cinemas and cultural venues raised prices after suffering losses during the Covid pandemic.

One exception is telecommunications. Strong competition between providers has led to falling prices in recent years, benefiting consumers.

Health: Healthcare costs are a particular source of frustration. Many households complain about rising health insurance premiums. However, these premiums are not included in the consumer price index.

Instead, the index measures healthcare prices such as medicines, medical devices, laboratory analyses, hospital services and medical treatments. Whether this adequately reflects the real financial burden on households remains a matter of debate.

Health insurance premiums are rising because people are claiming more and more benefits. In the official statistics, however, the prices for health services have fallen. Keystone / Gaetan Bally

More pay as compensation: Rising prices have affected people differently. Many employees have received higher wages as compensation. According to figures from UBS, nominal wages in Switzerland have risen by just over 7% in the past five years, largely offsetting inflation on average.

However, wage growth has not been evenly distributed across sectors. Around 30% of the population aged over 15 is not in employment. Pensioners, meanwhile, receive only modest increases in pensions, which are often insufficient to fully compensate for the loss of purchasing power.

What has also become more expensive and cheaper

The federal government’s statistics provide information on all sorts of things. Here are some price changes over the last five years:

Chocolate 24%

Sugar 22%

Olive oil 21%

Veal 14%

Milk 10%

Eggs 16%

Coffee 15%

Spare car parts 20%

Package holidays abroad 30%

Personal computer – 35%

Televisions – 23%

Translated by AI/amva/ts

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