The high inflation across the world is rippling as far as Switzerland. During the month of February 2022, Swiss prices rose 0.7%. Compared to the same month in 2021, prices were 2.2% higher, making this the highest price increase in two decades.
The 0.66% monthly consumer price rise in February represents an annualised rate of 7.9%. Essentially, if the latest monthly rate of inflation were to continue for 12 months it would push consumer prices up by 7.9%.
The increase in Swiss prices is significant given the downward price pressure a strengthening currency is exerting on the price of imports. Over the month of February 2022, the Swiss franc went from CHF 1.041 per Euro to CHF 1.029 per Euro, a rise of 1.17%. By 4 March 2022, the Swiss franc had almost reached parity with the Euro, the currency of the largest slice of Swiss imports.
The main drivers of inflation in Switzerland during February were transport (+0.23%), housing and energy (+0.15%) and clothing and shoes (+0.08%). These three together accounted for 70% of total monthly inflation.