Life has become more expensive in Switzerland – despite low inflation

Inflation is forecast to be just 0.2% in 2025. And yet many people feel the pinch: prices in Switzerland are around 7% higher than five years ago, putting pressure on household budgets. Higher prices: According to the consumer price index, the overall price level has risen by 7% over the past five years. The index tracks the cost of the most important goods and services households need. Such an increase is unusual for Switzerland, where prices were largely stable between 1994 and 2021. The recent surge means many households are having to cut back. Those who did not receive inflation compensation through wages are particularly affected, unless they were able to save during better years. Housing is the main burden: Housing is by far the largest expense. On average, households spend around 27% of their budget on rent and ancillary costs. It is also the most heavily weighted component of the consumer price index. An analysis by SRF shows that the category “housing and energy” has ...