The Swiss Consumer Price Index (CPI) fell by 0.1% in January 2025 compared to the previous month. The index reached 106.8 points (December 2020 = 100). While annual inflation in January 2025 was 0.4% compared to the same month the previous year. These results from the Swiss Federal Statistical Office (FSO) reveal some notable shifts in the prices of goods and services, which calls for shedding light on the factors influencing this change and a careful analysis of the future.
Reasons for the price decline in January 2025
The 0.1% decrease in the CPI is due to several main factors. The most prominent of these were decrease in electricity and supplementary housing prices. Electricity prices fell slightly in January, which contributed to lowering the cost of living. The decrease in demand during the winter period affected air transport and transportation prices, contributing to reduced prices in this sector. Also, the decline in clothing and footwear prices due to seasonal sales had an important impact on the decline.
However, the decline was not across the board, as some other sectors saw increases. For example, hotel prices rose slightly, as holiday period contributed to increased demand for accommodation. The costs of renting private transport also rose, while car insurance premiums also rose due to improvements in the insurance sector.
The importance of reweighting the basket of goods in the Consumer Price Index
To ensure the accuracy of the results, authorities reweight the basket of goods used in the calculation of the Consumer Price Index annually. This basket contains a set of goods and services that represent the consumption habits of private households in Switzerland. Since 2001, authorities have updated this basket based on data from the Household Budget Survey (HBS) collected from 3,300 households across the country.
Main changes in the basket weights in 2025
In 2025, the weights of some goods and services in the basket of goods used to calculate the CPI saw significant changes. For example, the weight of housing rents increased from 18.4% to 19.9%, reflecting an increase in housing costs. The weight of all-inclusive holidays increased from 1.6% to 2.1%, reflecting a rise in spending on travel and leisure activities. On the other hand, some groups saw their weights decrease. For example, the weight of the clothing and footwear group decreased from 3.2% to 2.6%.
The food and non-alcoholic beverages group also saw a slight decrease from 10.9% to 10.4%. In addition, the weight of restaurants and hotels was reduced from 10.0% to 9.5%. These changes reflect changes in economic priorities and consumer preferences among Swiss households. Harmonized Consumer Price Index (HICP): Comparison of Switzerland with EU countries
In January 2025, the Swiss Harmonized Consumer Price Index (HICP) recorded a value of 106.80 points, reflecting a change of -0.1% compared to the previous month. It also increased by 0.2% compared to the same month of the previous year. This index is an integrated tool for measuring inflation based on the same method used in EU countries.
With this index, inflation in Switzerland can be compared with EU countries. The results are published by Eurostat and information is provided on a dedicated website. These comparisons help European countries determine the inflation levels in each individual country and assess the impact of economic policies adopted in the countries of the region.
The role of data from the Household Budget Survey (HBS) in calculating inflation
The Household Budget Survey (HBS) is one of the main sources used to determine the weights in the basket of goods. This survey contributes to collecting field data on Swiss household spending on various goods and services.
The impact of price changes on Swiss families
By analyzing the data collected, the Swiss government can improve its economic policies and increase the efficiency of inflation control tools. The survey also helps to identify new consumption patterns and enables households to prioritize their spending, which directly influences the determination of fiscal and monetary policies.
Changes in the prices of goods and services are of great importance to Swiss families. For example, an increase in housing rental prices directly affects households’ purchasing power. While a decrease in clothing and footwear prices reflects the effect of seasonal sales that contribute to reducing households’ living costs.
In addition, an increase in hotel and accommodation prices affects families who prefer to travel and engage in tourist activities in the winter. Therefore, households should take economic changes into account when planning their monthly budget.
In light of the economic developments in Switzerland and the world in general, the consumer price index will likely reflect minor price changes in the short term. The future may see multiple effects due to global economic conditions such as changes in energy prices or developments in commodity markets.
The Swiss government is likely to continue to use accurate data from the household budget survey to make the necessary updates to the weights within the basket of goods. This will help ensure that the CPI remains accurate and reliable. At the same time, households.
Analysis of the Swiss CPI results for January 2025 reveals a range of factors that influence price changes and household spending. Despite the slight decrease in prices, changes in the basket of goods showed some important trends that could affect the Swiss economy in the future. As global economic developments continue to unfold, households and the Swiss government should monitor economic indicators to make sound financial decisions.
