Development of inflation rates in Switzerland
The inflation rate for consumer prices in Switzerland moved over the past 40 years between -1.1% and 6.5%. For 2019, an inflation rate of 0.4% was calculated.
During the observation period from 1979 to 2019, the average inflation rate was 1.7%
per year. Overall, the price increase was 97.92 %. An item that cost 100 Franc in 1979 was so charged 197.92 Franc in the beginning of 2020.
Overall, the development of inflation was very moderate, while in the same period there were far greater fluctuations in the euro currency area. In the years 2009 to 2016, negative inflation rates were even reached several times, which caused the general price level to decline and consumer prices to become more favorable. In this case, one also speaks of deflation, which rarely occurs in other countries.Back to overview: Switzerland
Performance over the last 40 years compared to the European Union
Performance based on 100% in 1978. Switzerland European Union
Strategy of the Swiss National Bank
Inflation in Switzerland has been largely constant for more than 25 years and remains within a narrow range. Conspicuously high inflation rates were only seen in the early 1980s at up to 6.5% and in the early 1990s at just under 6%. Even during the oil crisis around 1973, inflation in the Alpine country reached only about 9%, while in other countries it reached much higher levels.
The main reason for this is the monetary policy of the Swiss National Bank (SNB). It does not aim at the average inflation often aimed at elsewhere, where future values are to be adjusted to those of past years. Instead, it takes a far more relaxed view of the development of inflation rates and does not even aim for a fixed value, but is content to keep within a range of 0 to 2%. This means that it is rarely necessary to change the political and economic concepts that have already been tackled. For example, the SNB does not adjust its monetary policy in the event of a sudden rise in oil prices.
The Swiss franc, as a separate and independent currency, is a key instrument in this respect. Switzerland, with its relatively small and open economy, basically presupposes flexible exchange rates that are geared to internal price stability, but not to stable exchange rates with other countries. Thus Switzerland not only maintains a stable and even inflation, but also a long-term economic security.
Inflation calculator for Switzerland
Enter any amount, an initial year and an end year here. You will then be issued with the amount that arose from the original amount after inflation. Example: 1000 Franc in 1979 corresponds to an amount of 1,979.17 Franc at the beginning of 2020 due to inflation.