Price increase for housing and mobility above official inflation
Published: Thursday, Jun 27th 2024, 00:40
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The cost of housing and mobility once again rose faster than official inflation last month. 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 2.6% more expensive in May 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 1.4% in May.
A quarter ago, when the index was published for the first time, inflation in the housing and mobility sector was already higher than official inflation - albeit not as significantly.
According to the press release, housing and mobility account for around 40 percent of the daily consumption budget of an average family in Switzerland. Price changes are therefore "particularly painful" in this area.
More expensive rents
Housing in particular has become significantly more expensive in the last 12 months. According to the communiqué, this is due to the increased rental costs of existing tenancies as a result of the two increases in the mortgage reference interest rate last year.
Furthermore, the increasing shortage of rental apartments, particularly in cities, is leading to a low vacancy rate and thus to a continuous rise in the cost of newly rented apartments. Overall, a price increase of 3.4 percent was observed for residential rents.
According to the figures, electricity also became significantly more expensive (+17.8%). Motor vehicle insurance also rose by a whopping 4.7%. Meanwhile, small electrical household appliances, second-hand goods and furnishing accessories became 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.
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