Annual inflation in Switzerland was minus 0.7 percent in the previous year
Life in Switzerland has become cheaper in the past year. This will hardly happen again in 2021. The average annual tax rate in 2020 was minus 0.7 percent, according to the Federal Statistical Office. The last time inflation was negative was in 2016. The Swiss felt this primarily at the petrol station and when buying heating oil. According to the FSO, one of the main reasons for the falling price level was lower prices for petroleum products.
In addition, lower prices for package tours and air transport were reflected in the statistics. On the other hand, the prices for apartment rents and for cars have risen.
The Swiss franc also played a role, with its temporary strength that dampened inflation over the course of the year. In addition to the oil effect, this contributed to the fact that mainly imported goods became cheaper (minus 2.9 percent), while prices for domestic goods barely changed overall.
Economists assume that this will not happen again in 2021. “We see the lowest point in the annual rate has now been reached,” said a comment from Raiffeisen. The institute expects an average annual tax rate of plus 0.2 percent for 2021. Other interviewed experts estimate values of plus 0.2 to plus 0.5 percent.
