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COST OF LIVING

Seven products that are becoming more expensive in Switzerland

Covid and the war in Ukraine, coupled with rising inflation, made Switzerland even more expensive than it already was before. These are some of the goods you can expect to pay more for.

Furniture like this nice couch will be more expensive in Switzerland.Photo by Phillip Goldsberry on Unsplash Photo by Phillip Goldsberry on Unsplash
Furniture like this nice couch will be more expensive in Switzerland.Photo by Phillip Goldsberry on Unsplash Photo by Phillip Goldsberry on Unsplash

The good news — if we can call it that — is that inflation rate in Switzerland, which stood at 2.6 percent in April, is significantly lower than in neighbouring France (5.4 percent) and Germany (7.8 percent), as well as throughout much of Europe.

However, Swiss consumers are already feeling the increase in prices of many common purchases.

News platform Watson has listed seven goods and services that now cost more, basing its analysis on the national index of consumer prices (LIK), which measures the inflation of consumer goods in Switzerland.

Among the products that are now more expensive are:

Raw materials

Energy prices, including petrol, oil and gas, have increased in recent weeks. “We are currently paying around 77 percent more for heating oil compared to January 2019”, according to Watson.

A litre of petrol currently costs 2.05 francs, versus 1.60 francs in August 2021.

“A recovery is currently not in sight”, Watson added.

READ MORE: How Covid, Ukraine and energy costs are changing Swiss spending habits

Wood

Wood prices started to go up already during the Covid pandemic in 2020, rising by staggering  500 percent from May 2020 to May 2021.

One of the reasons is that wood pellets can also be used for heating.

“The war has not only made the raw material more expensive, but also the production of the pellets”, according to Andreas Keel, Managing Director of Holzenergie Schweiz, who added that in October a tonne of pellets cost 280 francs, and in January it rose to 360 francs.

What certainly doesn’t help matters is that Russia is one of the world’s largest wood exporters and the sanctions currently in place against this country are exacerbating this shortage.

READ MORE: Switzerland extends sanctions on Russian assets

Furniture

If you are looking for a new sofa, table or another piece of furniture, now is not a good time to purchase them, as their cost has risen by around 15 percent. One reason, as stated above, is the higher price of wood, but there are other contributing factors as well.

“The Swedish furnishing giant Ikea increased its prices by an average of 9 percent at the end of 2021. With a market share of 11 percent, Ikea is one of the big players in Switzerland”, Watson said.

Food

While food amounts to only 6.3 percent of an average household budget, it is probably the most important, as nobody can live without it.

The main reason for the increase is that Ukraine exports foodstuffs such as grain, which affects not only prices of products like baked goods and pasta, but also the cost of animal feed — the latter being essential for the production meat and dairy.

Clothing

Clothing prices typically increase in April / May, but this year they rose more than usual.

The war and Covid-related delivery issues are main factors, but the worst is yet to come, according to Andreas Bartmann, vice-president of  the industry association of textile retailers.

“In the fall, [price hikes] will hit us massively,” he said.

READ MORE: How to protect your savings against inflation in Switzerland

Transportation

“Anyone who wants to buy a new car currently has to pay around 10 percent more than in January 2019”, Watson said.

And this increase is likely to continue, mainly due to higher costs of  raw materials and general delivery problems.

Opting for the used-car market is not a solution either, Watson noted, as “the prices there rose even more significantly than for new cars due to the excess demand”.

You could opt for a new motorcycle or bike, but there too prices are expected to climb — also due to shortage of raw materials and delivery bottlenecks.

Travel

Now that Covid restrictions have been lifted in most countries, foreign travel may remain inaccessible for many people anyway,  because it became more expensive.

One major reason is that, with fuel now costing more, airlines are increasing the price of tickets.

By the same token, the price of petrol could make driving to your holiday destination costlier as well.

Your best bet may be to just stay home. It will feel like 2020 all over again, but without the masks.

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FOOD & DRINK

REVEALED: Which city has Switzerland’s cheapest beer?

Anyone looking for a cheap pint in Switzerland is likely to struggle no matter where they are, but there are still good deals to be had for a cold, frosty one.

REVEALED: Which city has Switzerland’s cheapest beer?

Some research carried out in Switzerland is more important to consumers than others.  

This one definitely fits under the ‘news you can use’ category.

A recent survey conducted by consumer website Hellosafe compared the price of a half a litre of beer in 29 cities in different cantons.

The prices come from 2022 and have incorporated recent spikes in cost for beer producers. 

READ MORE: Seven beers to try in Switzerland

Where is Switzerland’s cheapest beer? 

The study found that one of the cheapest pints, at 5.22 francs, can be had in Aarau, followed by Bern  (5.92).

While it is one of the world’s most expensive cities, a big mug of beer in Zurich costs “only”  6.96 francs, four cents less than in another relatively inexpensive location, the Valais capital of Sion.

Where is Switzerland’s most expensive pint of beer? 

Beer lovers in the west of Switzerland would be better off sticking to wine, with French-speaking Switzerland charging the most when it comes to beer anywhere in the country. 

The priciest half-litres are in Geneva (7.72 francs) and Lausanne (7.96).

Reader question: Can you drink in public in Switzerland?

Next on the list are Basel and Davos, which may appear to have very little in common with each other besides beer costing CHF7.03 per pint. 


What does the future hold? 

The study also looked ahead at how the war in Ukraine is likely to increase the cost of cereals used to manufacture beer, impacting the price of the end product.

Grain prices in Switzerland are expected to rise by 4 percent per tonne by the end of 2022, which will see price increases in several parts of the country. 

Accordingly, the price of a pint in Lausanne could increase by 32 cents and reach CHF 8.28. 

If Hellosafe’s estimates are correct, then the price of beer will increase the least in Olten, Langenthal, Chur and Arbon.

Beer in Switzerland

While Switzerland may be known internationally more for wine, beer has seen a strong surge in interest in recent years – particularly since the pandemic. 

Switzerland now boasts the highest density of breweries anywhere in Europe, with the Covid crisis a major factor in transforming the country into a beer hub. 

READ MORE: How the Covid crisis led to a boom in Swiss beer production

In 2020, 80 new breweries were established in Switzerland. 

Switzerland now has 1,212 breweries – which gives it a higher ratio of breweries to people than any of the other big brewing nations in Europe, including Germany, the Netherlands, the Czech Republic and Belgium. 

Just ten years ago, Switzerland had only 246 breweries, while in 1990 there were only 32 breweries in the entire country, the Neue Zürcher Zeitung reports. 

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