Price increase for housing and mobility is higher than official inflation
Published: Thursday, Dec 19th 2024, 07:40
Volver a Live Feed
The cost of housing and mobility in Switzerland once again rose faster than official inflation last month. Despite a lower reference interest rate, the forecast for rental costs in 2025 remains gloomy. This is shown by a price index compiled by the comparison portal Comparis and the KOF Swiss Economic Institute.
According to the quarterly "Womo Price Index", prices for housing and mobility in Switzerland were 1.7% more expensive in November 2024 compared to the previous year, as Comparis reported on Thursday. In contrast, the national consumer price index, which covers a representative basket of over 1,000 goods and services, rose by just 0.7% in the same month.
According to the press release, housing and mobility account for around 40 percent of the household budget for an average family in Switzerland. With average costs of CHF 3,700 per month for rent, car and public transport, a price increase of 1.7 percent would mean annual additional costs of around CHF 755.
Rental costs as a driver of inflation
Rising rents are having a particularly strong impact. They have risen by 0.5 percent in the last three months alone, according to the report. Over the last 5 years, the increase amounts to around 9 percent.
A trend reversal is not expected in the coming year either. According to Comparis, the expected reduction in the reference interest rate should provide temporary relief for existing rents, especially as this means that those affected are entitled to a rent reduction. However, landlords can offset 40 percent of the accumulated inflation and a flat rate of 0.5 percent per year as a general cost increase, which will weaken the effect.
At the same time, new tenants are confronted with persistently high asking rents due to the shortage of living space. "Rising rents are and will remain a significant driver of inflation in the future," summarizes financial expert Dirk Renkert.
Lower fuel prices
In the three months since August, prices for floor coverings and carpets (+5.5%), bicycles and electric bicycles (+5.3%) and materials for home repairs (+5.2%) have risen significantly. People also had to pay more for living room and office furniture (+2.4%) and motorized tools for home and garden (+1.6%).
Meanwhile, the sharpest fall in prices was recorded for fuel, where prices have fallen by 5.8% since August. Consumer goods for household use (-2.5%) and cars and used cars (-1.1%) also became cheaper. Energy for heating also costs less: according to the Comparis analysis, gas, heating oil, firewood and district heating became 1.9% cheaper.
Comparis compiles the quarterly Womo price index in collaboration with the KOF Swiss Economic Institute at ETH Zurich. In the housing sector, the index takes into account the development of rents and the prices of electricity and furniture, for example. In the mobility sector, it includes the prices for petrol or diesel, for cars or for public transport tickets.
©Keystone/SDA
Spanish 
English 
German 
French 
Arabic