Inflation in Switzerland has fallen to its lowest level seen since July 2021, new figures from the Federal Statistical Office (FSO) have revealed. The findings show that the alpine nation is still ahead of the international curve when it comes to combating price rises, and buoys hopes that Swiss workers will see their wages rise above inflation for the first time in four years.
Switzerland reports inflation rates unseen since 2021
According to the data, in September 2024 consumer goods were 0,8 percent more expensive than they were during the same month last year. This is a fall from the annual inflation reported in August (1,1 percent) and amounts to the lowest rate seen in Switzerland since July 2021.
Annual “core inflation” - the index that doesn’t include products subject to sudden price fluctuations like energy and food - also fell from 1,1 percent in August to 1 percent in September. What’s more, the FSO noted that between August and September 2024, the cost of living actually fell by 0,3 percent.
Swiss inflation leagues lower than Eurozone and US
Switzerland’s inflation figures continue to compare well on the global stage, though the gap has started to close. Annual inflation figures for the Eurozone were 1,8 percent in September, while the United States inflation rate stood at 2,5 percent in August.
The FSO explained that while domestically made and sold goods are still 2 percent more expensive than they were a year ago, goods imported from abroad are 2,7 percent cheaper. Recently, many goods and services in Switzerland have gotten less expensive, including holidays, flights, fuel and heating oil. By contrast, the cost of clothing and fruit has gone up.
Swiss wages to rise faster than inflation for first time since 2020
The ever-slowing rise in the cost of living brings hope that salaries in Switzerland will finally be able to rise faster than inflation. The latest report from the KOF Swiss Economic Institute at ETH Zurich predicted that average wages quoted in payslips for full-time workers will rise by 1,6 percent in 2025, eclipsing the inflation rate for the first time since 2020.