Switzerland Today
Greetings from Zurich!
Not long ago, people were stressing about the cost of groceries. Dampening inflation has eased some of these worries, but they have been replaced by the increasing cost of keeping a roof over peoples’ heads.
But before that, the news of the day:
In the news: shrinking glaciers, antibiotic resistance and salaries.
- There are fears that many Swiss glaciers situated south of the Alps may melt away completely within the next five to 10 years.
- Heavy rainfall has increased the risk of avalanches is some high lying areas of the Alps.
- The Swiss government has developed a strategy, together with cantons and other partners, to tackle antibiotic resistance.
- Many workers in Switzerland will see a real increase in their salaries despite inflation, says the Employers’ Association.
Housing worries increase
Inflation of basic household items may have come more under control in recent months, but the rising cost of renting or owning a property is showing no signs of abating.
A survey by property company Homegate shows that the average asking rent in Switzerland has swollen 4% between October of 2022 and last month.
Renting a property in cantons Glarus, Valais, Zurich and the two Appenzell cantons has become particularly costly compared to two years’ ago. Other areas have shown more moderate rent spikes.
This might explain why hundreds of people recently took to the streets in Zurich to protest against rising rental costs.
Homeowners have had it relatively easier in recent years with rock bottom interest rates to help them service mortgage debt.
But that’s all changed with the rapid advance of rampant inflation. There’s over CHF1.1 billion in mortgage loan agreements about to expire, which will spell trouble for some homeowners.
Our very own central bank expert Fabio Canetg gives his take on whether interest rates will continue to rise in the latest edition of his Geldcast podcast.
It’s not easy to predict! Some economic indicators point to an easing of interest rates, but another key data set points to the reverse happening.
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