One of the richest countries in the world Switzerland it is known for its high cost of living, with Zurich and Geneva consistently ranked among the ten most expensive cities in the world to live in. But while inflation and inflation are hitting record levels and becoming one of the biggest problems for consumers, governments and central banks, the situation in Switzerland does not seem to be as dire as moneyreview.gr. In 2022, inflation in Switzerland averaged 3.5%. These may be the highest levels recorded in the country in the last 29 years, but they are by no means comparable to levels in other developed countries. Last year inflation was 9.1% in the US, 10.6% in the Eurozone and 11.1% in the UK. According to the Swiss Central Bank, inflation in the country should fall to 2.4% this year, and to 1.8% in 2024. That is, it will be below the target of 2%.

As pointed out by a consumer who spoke to an American news network CNBC, rising prices are not such a big problem for the Swiss. “I think they feel it more abroad than here in Switzerland. My mother lives in Germany, in Berlin, and she tells me all the time that everything is getting more expensive.” It certainly helps that Swiss citizens are among the wealthiest in the world. Because the average adult owns a fortune of $696,604, the Swiss spend a smaller percentage of their income on food and other necessities, so they are less affected by rising prices. Another reason for Switzerland’s relative price stability is the strong franc, which hit 1:1 against the euro in 2022, as it is supported by the country’s high reserves in gold, bonds and other assets. Therefore, it is considered a safe investment haven in times of high volatility. With Switzerland importing $302 billion worth of goods and services annually, the strong franc is holding back the cost of those imports.

Inflation in the country is expected to fall to 2.4% this year and fall to 1.8% in 2024.

hydroelectric power plants

At the same time, Switzerland is somewhat immune from the energy crisis affecting the rest of Europe after the Russian invasion caused gas prices to skyrocket. This land of mountains and over 1,500 lakes relies heavily on hydroelectric power for its energy consumption.

In addition, energy suppliers in Switzerland are mostly state-owned, which means they are less subject to market fluctuations and their tariffs are subject to more stringent regulation. At the end of 2022, Swiss energy prices rose by 16.2%, Germany by 25%, the Netherlands by 30%, the UK by 52.3% and Italy by 64% at the end of 2022, according to CNBC and moneyreview. .7%. .gr. In Switzerland, 30% of the prices of key commodities used to measure inflation in the eurozone (food, housing, transport) are also subject to regulation, resulting in food prices up 4% year-on-year in December 2022 from to an increase of 11.9% in the US, 19.8% in Germany and 16.9% in the UK.