Inflation profiteering charge levelled at Swiss retailers

The price of many consumer staples has shot up in the last 12 months. © Keystone / Gaetan Bally

The Swiss price watchdog has stepped up pressure on retailers he accuses of cashing in on inflation at the expense of consumers.

Stefan Meierhans has drawn on research into the rising price of household goods in Switzerland, particularly from consultancy group Deloitte.

+ Read how Swiss food staples increased 20% in a year

“Deloitte has come to the conclusion that, regardless of the industry, many sectors have seized the opportunity to raise prices,” he said on Sunday.

Swiss inflation rose to 2.8% last year, which is below price increases in many other countries but still way above average for high-price Switzerland.

Inflation dropped to 1.7% in June, after peaking at 3.4% at the start of the year, with the central bank forecasting an annual rate of 2.2% even after raising interest rates several times.

+ Read how Switzerland copes with inflation

Earlier this year, Meierhans took aim at Switzerland’s two largest retailers, Migros and Coop, sparking a fierce war of words.

He now wants to widen his campaign to encompass the entire Swiss retailing sector.

Christa Markwalder, president of the Swiss Retail Federation, rejected claims of profiteering. “Fortunately, Switzerland has lower inflation rates than other countries – but certain prices have to be increased as a result,” she told Swiss public broadcaster, SRF. 

Coop said it bore additional costs of CHF250 million ($287 million) last year that were not passed on to customers. Migros said the price watchdog botched calculations when making claims of profiteering.

There is little doubt that prices have risen in the last 12 months, and not just in high street stores. Air transport prices have risen 35%, electricity by 25%, butter and fats by 20%, and heating costs by an average of 16%, states SRF. However, some prices, such as fuels and telecommunications, have recently fallen.

Meierhans has invited retailers to discuss profit margins at a ‘Purchasing Power Summit’ he has organised in September.