The price monitor sounds the alarm – our interview

2023-09-05 18:53:38

“The state should now refrain from raising prices if possible”

Stefan Meierhans warns that inflation is now also affecting medium-sized companies. He wants to examine companies specifically for any “greed inflation”.

Posted today at 8:53 p.m

“I’m worried about stocks”: Stefan Meierhans, price monitor, at the media briefing for the first Swiss purchasing power summit in Bern.

Photo: Marcel Bieri (Keystone)

Life gets more expensive. Now the price monitor sounds the alarm. At the first Swiss Purchasing Power Summit Tuesday in Bern, together with consumer protection organizations from Ticino, western and German-speaking Switzerland, he called for measures to be taken by politicians.

First, the bank fees and health insurance premiums should come into focus. That can be implemented quickly. The banks have recently received strong support from taxpayers, Consumer Protection Director Sara Stalder told the media. Now they have to give something back to their customers.

The banks could abolish the fees quickly introduced in times of negative interest rates as a first short-term measure to alleviate the inflationary pressure. In addition, they should again pay at least 1 percent interest on savings.

As a second quickly effective measure, Stalder called for greater reductions in health insurance premiums. And the price monitor wants to take a closer look, as he says himself.

Mr. Meierhans, where is inflation affecting people the most?

The concerns are great in all parts of the country. In Ticino, rising food prices are the biggest concern, and in western Switzerland, health insurance premiums. In German-speaking Switzerland, it’s the expensive rents and rising prices for public transport. In general, however, they all have the same problems.

Although industry is currently stagnating, the domestic service sector continues to grow at an above-average rate. People go shopping, go to restaurants and go on vacations and excursions. Many seem to be doing very well.

In fact, many people continue to spend heavily. But since 1943 – ie 80 years ago – the decline in real wages has never been as sharp as it was last year. I’m worried about stock. Today, the Federal Electricity Commission announced price increases of 18 percent on average for January. Higher postal rates will also apply from January. The new health insurance premiums also apply from January.

In addition, there will be further rent increases in the course of the next year.

Exactly. And that means: all of these increases will put a massive and permanent strain on people’s wallets in Switzerland. My symptoms have already increased. When I imagine what’s to come, it’s clear to me: the price problem will become more acute in the coming months. Seen in this way, I am not alarmist, but basically already too late.

“Authorities should not calculate generously, but rather tightly. You can use accumulated reserves to do this.”

“Price increases must become a priority in politics,” it said at the media conference from Tuesday. How can the state curb inflation?

Through negotiations, I was able to prevent price increases of 120 million francs for the post office and public transport. But that’s not enough. My demand: All state and state-related companies should assume their responsibility – for example in the water supply, sewage, building insurance, community day-care centers or municipal lunch tables. Basically, this applies to all services for which the state charges money. It is in his interest that the lower and middle-sized companies are not additionally burdened. The state should now refrain from raising prices if possible.

Horte and water suppliers also pay more for electricity, groceries and rent. Where should you settle these additional costs?

There are state-affiliated companies that have a zero-risk business. They should use their leeway and raise prices as moderately as possible or in stages. Authorities should not calculate generously, but rather tightly. You can use accumulated reserves to do this.

How do you know that medium-sized companies are now also being affected by inflation?

It doesn’t necessarily show up in complaints, but when I talk to people on the street or on the tram, they tell me about daycare costs that are rising, or about expensive prices for a daughter’s general subscription when she goes to high school. Others are dependent on the car – they suffer from the high petrol prices. There are also letters that say succinctly: “Food, health insurance, electricity – where does that end?” Nowadays, people don’t fret about late fees that seem unfair to them like they did a few years ago. Instead, they worry about their overall situation.

“I will check which companies raise their prices more than the additional 0.4 percent VAT to be paid.”

How else does this show up?

Last year I received 2,400 complaints, almost twice as many as in 2021. So far this year we have seen another 20 percent increase. In Ticino, more and more people need budget advice, and there is already a long waiting list. There are problems in western Switzerland because, unlike in the past, many people are now dealing with a change of
health insurance can only save a little money.

There have been price increases for months – including many unjustified ones. Why do you only start VAT monitoring at the beginning of the year?

If a higher VAT rate applies as of January 2024, that will be a good moment for a before/after comparison for me. In particular, I would like to examine a possible «greed inflation». That means: I will check which companies take advantage of this and raise their prices more than the additional 0.4 percent VAT to be paid.