Swiss inflation at historic peak
The increase of 0.7 per cent compared to the previous month can be attributed to various factors, including the rise in house rental prices of heating oil prices and that of many food products. On the other hand, prices in the non-hotel sector and those of detergents and cleaning products decreased.
According to the results of the Federal Statistical Office (FSO), in May 2022, the consumer price index (CPI) increased by 0.7% compared to the previous month to 104.0 points (December 2020 = 100) and compared to the same month of the previous year, the increase was +2, 9%, while Switzerland’s Harmonised Index of Consumer Prices (HICP) stood at 103.72 points (base 2015 = 100), which corresponds to a rate of change of +0.6% compared to the previous month and +2.7% compared to the same month of the previous year.
How long will high inflation last?
The HICP is a supplementary inflation indicator developed on the basis of a methodology common to the member states of the European Union, which makes it possible to compare inflation in Switzerland with inflation in European countries.
The term ‘inflation‘ is often used to describe the change in the annual average from the previous year. It therefore describes the change in the level of the 12 months of the current year compared to the 12 months of the previous year.
With prices flying, one immediately thinks of the Swiss National Bank (SNB), which currently keeps its guide rate at the lowest level in the world, -0.75%, and the SNB is still expected to raise its reference rate to -0.50% in December 2022, but the risk of an early rate hike is increasing.
Source: admin.ch