2023-07-03 06:33:52
– Swiss inflation falls significantly
For the first time since January 2022, price increases in Switzerland have fallen below the 2 percent mark.
Published today at 08:33
Inflation in Switzerland fell once more clearly in June. Specifically, annual inflation fell in June 2023 to 1.7 from 2.2 percent in May, as the Federal Statistical Office (BFS) announced on Monday. In the first two months of 2023, it rose to 3.4 percent due to higher electricity and flight prices, and it has been falling steeply since then. The decline was as expected. Economists polled by AWP had estimated a value between 1.6 and 1.9 percent.
However, domestic goods still cost 2.3 percent more in June than a year earlier, while imported goods cost 0.1 percent less. Core inflation, which excludes volatile commodities like food, energy and fuel, fell to 1.8 percent from 1.9 percent.
Shopping is only slightly more expensive: in June, inflation rose by 1.7 percent compared to the previous year.
Photo: Urs Jaudas
Inflation in the Eurozone
The fight once morest inflation occupies the entire euro zone, Great Britain and the USA. In Germany, prices have risen more sharply in the past two years than at any time since the 1970s. In response, the European Central Bank raised interest rates from 0 to 4 percent within a year. ECB President Christine Lagarde has announced another rate hike for July.
In terms of inflation, Switzerland is better off than the EU with a value of 2.2 percent in May and now 1.7 percent. But here, too, the central bank raised interest rates to 1.75 percent last month.
A dispute is raging in the Governing Council of the European Central Bank as to whether the rate should be raised once more in September – or whether that will be the end of it for the time being. Some, like Chief Economist Philip Lane, say there is no urgency in committing to a decision for the September 14 meeting just yet. Others, like ECB Director Isabel Schnabel, say it’s better to risk tightening too much than too little. Otherwise the inflation target of 2 percent cannot be reached.
Inflation in Switzerland and Europe
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