Six things likely to get more expensive in Switzerland in 2022
Over the last year, countries around the world have seen prices rise for everyday items, from fuel for vehicles to electricity and housing. Despite weathering financial hardship in the past, Switzerland is not immune to these price rises, and many regular products are expected to get more expensive in the coming year.
Why are prices rising in Switzerland?
Historically, Switzerland has been insulated from large macroeconomic changes abroad. Despite this, the Tages-Anzeiger reported that the current rise in inflation, the supply chain crisis and the COVID pandemic have all started to impact the Swiss market, and - along with uncertainty - have made many goods and services more expensive.
The weather is also playing a role in the rise in prices, with some areas impacted by climate change seeing a drop in production. This leads to more expensive imports to Switzerland, which itself did not have a good harvest in 2021, suffering poor wine crops and a shortage of carrots.
In 2021, Swiss economists warned that a combination of high consumer demand and supply chain issues abroad could cause a spike in inflation. The Federal Statistical Office confirmed this in October, when inflation rose to 1,2 percent. With this in mind, here are six things that are expected to get more expensive in 2022:
Electricity prices to rise in Switzerland
According to the Federal Electricity Commission, the price of energy will increase for households during the next year. The commission estimates that families will pay around 21,2 rappen (cents) per kilowatt-hour, an increase of 3 percent on last year.
As well as electricity, Switzerland is also due to face a rise in the price of natural gas and items essential for utilities, as supply issues have caused the cost of imported LPG and heating oil to increase. For those families whose houses use heating oil, the next year could see large price increases.
Petrol to lose subsidies from the Swiss government
During 2021, Switzerland managed to avoid the fuel shortages in other parts of Europe, which led to some German drivers coming to Switzerland to fill up. Now, the price of petrol is set to increase by 4,5 rappen (cents) a litre, due to new climate policy.
At the end of 2021, a fuel subsidy for drivers expired, despite protests by some in the Swiss government. The lack of a fuel subsidy will cause prices to increase, along with possible price hikes due to a lack of supply and global factors beyond Switzerland's control.
Price of bread set to increase
A recent increase in the price of grain will mean that bakers around the country will be forced to charge more for pastries and other bread products. Baked goods will be 15 percent more expensive on average compared with last year, with some indulgent foods like Cremeschnitte and croissants seeing the biggest rise.
The Swiss Association of Bakers and Confectioners made the recommendation to all businesses in Switzerland. However, some local chains in Zurich and Bern have said they are prepared to introduce the higher price gradually.
Coffee in cafes set to become more expensive
According to CafetierSuisse, the price of barista coffee across the country will rise significantly over 2022. The increase is expected to be around 20 to 25 rappen (cents) per cup in cafes, and is caused by the impact of COVID on the hospitality industry.
As the industry faced near-constant uncertainty and occasional lockdowns, the shortfall generated by cafes will be transferred to the consumer. CafetierSuisse said that coffee will be most expensive in German-speaking Switzerland, although prices will rise in all cantons.
Wood shortages leads to more expensive furniture
According to the Tages-Anzeiger, the price of furniture is likely to rise due to a shortage of wood. The furniture giant Ikea said that it is planning a price increase across its range due to continued supply issues abroad, which now extends to metal and foam products.
Ikea revealed that a 9 percent increase in prices is likely worldwide, but conceded that some countries will be more affected than others. It remains to be seen how much prices will rise within Switzerland.
Swiss Post to increase stamp prices
Finally, sending letters in Switzerland will get a little more expensive in 2022. Swiss Post, the national postal service of Switzerland, is set to increase the price of stamps by up to 10 rappen (cents) a letter, the first time prices have increased for 18 years. In addition, those who want to buy a PO box will now have to pay 120 Swiss francs a year for the privilege, despite the service being free in the past.