Compared to the same month last year, prices in Switzerland rose by 1.3 percent. This is reported by the Federal Statistical Office (BFS). This value is much lower than in December 2023: Back then, prices were 1.7 percent higher than the year before.
In January 2023, prices are 1.3 percent higher than the year before. The sharp decline is a surprise. Economists surveyed by AWP had estimated annual inflation at between 1.5 and 2.2 percent.
In December, inflation accelerated from 1.4 to 1.7 percent. Before that, inflation had fallen from over 3 percent for months, although in June 2023 it fell below the 2 percent mark for the first time since January 2022. Core inflation, which excludes, among other things, the volatile prices for energy and fuel, has now also declined. It fell to 1.2 from 1.5 percent. This continues the trend towards lower inflation rates.
Meanwhile, consumer prices rose slightly by 0.2 percent to 106.4 points in January compared to December 2023. The increase is due to various factors, including higher prices for electricity and the hotel industry, according to the Federal Statistical Office. Prices for motor vehicle insurance and meals in restaurants and cafes have also risen. According to the information, prices for air transport have fallen, as have those for clothing and shoes.
Adjustments to the shopping cart for the country index
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In January, the basket weighting for the national consumer price index is adjusted. The Federal Statistical Office is thus taking into account the changing consumption habits of private households.
However, there will only be selective shifts in 2024, after some of them were significant during and after the pandemic.
The weight of the main group restaurants and hotels increases from 9.3 to 10 percent, and that of the main group clothing and shoes from 3 to 3.2 percent. Household spending on package holidays abroad is now also more significant (+0.4 percentage points).
On the other hand, the weight for transport falls from 12 to 11.4 percent due to a reduced share of expenditure on automobiles.
Overall, domestic goods increased by 0.6 percent. The value of imported goods, however, fell by a significant 1.3 percent.
Legend: Money continues to lose value – but more slowly: In the first month of 2024, inflation will be only 1.3 percent. Keystone/CHRISTIAN BEUTLER
Compared to the USA and the EU, Switzerland is doing relatively well. Inflation in this country is still significantly lower. In all three regions, the decline in inflation rates ended at the end of 2023. In the USA, however, there is hope that inflation could have fallen below 3 percent for the first time in January – the current data is due to be published today.
There is already a lot of speculation about what the turnaround at the end of last year means for the economy. Some experts expect that The US National Bank will not lower interest rates any further for the time beingto counteract a renewed rise in inflation.