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Every month, the federal government publishes the latest figures on consumer prices. An important key figure – but why?
Our consumption costs us around 60 percent of our household budget every month. And the more expensive life becomes, the less is left at the end. Inflation is therefore an important figure, for example for the trade union wage negotiations in the autumn.
The national index of consumer prices is an inflation index that measures inflation in Switzerland.
The national index of consumer prices is compiled by the Federal Statistical Office (BFS). In order for the key figure to be meaningful, all consumer spending is taken into account. This includes food and luxury goods, rent, furniture and other furnishings, but also healthcare costs, mobility, mobile phones and the Internet, leisure time expenses, travel including travel items such as suitcases and bags, through to visits to the hairdresser or legal fees.
The shopping cart has to be adjusted again and again
The list of recorded prices, the so-called shopping basket, is huge: “We collect around 100,000 prices per month,” says Hans Markus Herren, Head of Consumer Prices at the FSO. “It is not the price level that is collected, but the price development.” While small adjustments are made on an ongoing basis, the list of recorded prices is fundamentally revised every five years.
The last major adjustment to this shopping cart took place in 2020. Since then, the prices for car rental companies have been recorded. However, the cost of fabric for sewing clothes is no longer charged. Hans Markus Herren expects changes again in the next major revision. “In the field of consumer electronics and technology, there is always a need for adjustment because the market is changing very quickly.” The field of mobile homes and caravans should also be added, the expert from the FSO estimates, “a lot of money is spent on this in Switzerland”.
Important for wage negotiations
The LIK shows how much more expensive or cheaper life in Switzerland has become. “This key figure can be used for indexing wages and pensions,” says Herren. The national index of consumer prices gains in importance, particularly in autumn, when the trade unions are about to negotiate wages. However: “Each person also consumes individually,” says Hans Markus Herren. The LIK is also an average value. Depending on consumer behavior, inflation can vary greatly from this value.