After years of rising prices, the cost of living in Switzerland has finally stopped rising, according to the latest consumer price index. The Federal Statistical Office (FSO) explained that increased costs in some areas are now being balanced out by cheaper prices elsewhere. Here are some of the things set to get cheaper in the coming months.
According to the latest FSO index, on average consumer prices did not rise at all between July and August 2024. In all, annual inflation in Switzerland remained stable at 1,1 percent, one of the lowest rates in Europe.
The FSO explained that rather than all prices falling across the board, some products have gotten more expensive while others have gotten cheaper. “Prices for apartment rentals and for clothing and shoes have risen. In contrast, prices for rentals of private transport, air travel, heating oil and package holidays abroad have fallen, as have those for hotels and supplementary hotels,” the index noted.
In addition, Watson explained a combination of local and international factors will mean that people in Switzerland will pay less for a number of different products and services. Here are five examples:
First, the FSO noted that the cost of fuel has been gradually decreasing, having fallen by 1,9 percent compared to August 2023. At the same time, heating oil costs have also fallen by 12,6 percent. Both cost cuts have been attributed to stabilising oil and energy markets, the benefits of which are slowly being transferred to consumers.
In addition, energy providers in Switzerland expect the cost of electricity to fall significantly when tariffs are renewed for 2025. The Federal Electricity Commission expects energy prices to be cut by 10 percent on average next year, though some providers are cutting rates even more.
Lower prices are also expected at supermarkets in Switzerland, as different brands compete for customers. The first skirmishes in this new price war are being fought over meat, with Aldi Switzerland cutting meat prices by up to 36 percent at the beginning of September. Denner followed up with a 25 percent cut on minced beef, while both Coop and Migros have also announced cuts.
While praised for trying to dissuade residents from engaging in shopping tourism in Germany and France, the news has come as a surprise for Swiss meat association Proviande. Employee Stefan Muster said that they were “surprised” by the cuts, given that processing prices have actually increased this year.
Also at the supermarket, the FSO noted that fruit and vegetable prices have dropped significantly. The cost of vegetables like tomatoes and peppers has fallen by 3,3 percent in August compared to July and by 11,2 percent compared to August 2023. For grapes and melons, the drop was 7,8 and 15,5 percent respectively.
This phenomenon was blamed on a better harvest in 2024 increasing supply, and the poor weather in Switzerland reducing demand this summer. "When it's cold and rainy, people don't buy melons," noted Christian Sohm from the Swiss Fruit, Vegetable and Potato Trade Association.
In a change years in the making, from 2025 Switzerland will cut the taxes imposed on menstrual products. Instead of the regular rate of value-added tax (8,1 percent), the items will be taxed at the reduced rate of 2,6 percent.
Even though the tax cut is yet to be enforced, Swiss supermarkets have already voluntarily cut their prices in preparation for the change. Aldi cut the cost of sanitary towels, tampons and panty liners back in January, with Coop and Denner following suit in mid-July.
Finally, those planning an autumn or winter getaway will be happy to hear that the cost of holidays is finally falling too. The FSO found that the cost of flying from Swiss airports was 6,7 percent cheaper in August compared to July, and is now slightly cheaper than last year.
However, hotel bookings are only cheaper on a case-by-case basis. Hotelplan communications manager Muriel Wolf told Watson that costs are higher in the Spanish islands and Turkey, while stays in Tunisia, the Greek Islands and Cyprus are cheaper. What’s more, SWISS told the newspaper that while prices are lower now, in the future "the commitment to greater sustainability, in particular, will lead to investments and therefore high costs."