Switzerland – and in particular its currency, the franc – is considered a safe haven.

And it is the Franc that is causing the standard of living in the Alpine country to rise only moderately in an international comparison.

According to calculations by the Federal Statistical Office, inflation rose by 3.5 percent in August compared to the same month last year.

That doesn't sound dramatic, but it is still a shovel more than the 3.4 percent inflation in July, which was the highest value in almost three decades.

And also the upper limit of the expectations of economists.

Because Switzerland also “imports” inflation.

Imported goods proved to be the price drivers, the price of which rose by 8.6 percent.

By way of comparison: Goods produced in Switzerland only increased in price by 1.8 percent over the course of the year.

Archibald Preuschat

Editor in Business

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Unsurprisingly, the highest price jump compared to August last year was for petroleum products: namely a whopping 42.3 percent.

And that is higher than in Germany: Here it was 35.6 percent in August - although the comparison is a bit laggy, because the Federal Statistical Office summarizes fuels and household energy in this country.

But the oil prices, which are reflected in the price of petrol, give Switzerland a double-digit inflation rate, namely in the transport sector, the prices of which rose by 10.4 percent.

In Switzerland, energy prices are included in the area of ​​housing and energy.

Here, too, the inflation rate is above average at 4.7 percent.

The same goes for the household goods and housekeeping sectors with 6 percent and clothing and shoes with 3.7 percent.

However, the rise in prices in the food and non-alcoholic beverages sector was below average, rising by just 2.5 percent over the course of the year.

In Germany, on the other hand, the price of food rose by 16.6 percent in August compared to the previous year.

In Switzerland itself, the record price increases are viewed with great composure.

One likes to refer to the inflation rates elsewhere;

such as the 9.1 percent in the countries of the euro zone or the 7.9 percent in Germany.

That has a lot to do with the strong franc.

Economiesuisse, the umbrella organization of the Swiss economy, calculated as early as spring: “With an exchange rate of 1.70 to the dollar – as in 2001 – the price increase from 30 to 120 dollars for a barrel of oil would cost Switzerland the equivalent of 153 francs.

At a rate of 0.92, on the other hand, it only costs the equivalent of 83 francs.” And the euro is now worth less than one franc.

Switzerland imports most goods from Germany – in 2021 the share was 27.4 percent.

Italy is second and France fourth.