Despite high inflation: Living in Switzerland is half as expensive as in Germany

Although consumer prices have recently risen more sharply than they have been in 28 years, life in Germany is comparatively cheap.

The cost of living in Switzerland in July was more than half (51 percent) higher than in Germany, as the Federal Statistical Office announced on Thursday.

"In addition to Switzerland, the cost of living was higher in most of the other neighboring countries than in Germany," it said.

In Denmark, for example, consumers had to pay 28 percent more to purchase a representative shopping basket, and in Luxembourg 25 percent more.

In the Netherlands the price difference to Germany was seven percent, in Belgium and Austria five percent each and in France four percent.

In Poland, on the other hand, the standard of living was 46 percent cheaper than in Germany, and 28 percent cheaper in the Czech Republic.

Italy and Spain are cheaper

According to the statistical office, a comparison with other European countries also shows enormous differences in the cost of living: These were 40 percent higher in Iceland and 30 percent higher in Norway than in Germany. In contrast, they were around half lower in Bulgaria, Romania and Bosnia-Herzegovina. Lithuania and Croatia were each 36 percent, Spain 13 and Italy nine percent below the German price level.

Consumer prices in Germany rose by 3.9 percent in August, as much as they had been since 1993. This was ensured by rising energy prices and a so-called base effect: Due to the Corona crisis, many goods and services were available for less in the past year, especially since VAT was also reduced at times. This effect is now reversed. The Ifo Institute predicts an average inflation rate of 3.0 percent for this year. The last time there was a higher value was in 1993 with 4.5 percent. In 2020, the inflation rate was just 0.5 percent.