Development of inflation rates in Switzerland

Performance over the last 41 years compared to the US

Performance based on 100% in 1978.

      Switzerland       USA

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 1,964.80 Franc at the beginning of 2021 due to inflation.