Loss of income: Prices rise faster than wages

May 1st is Labor Day. Wage earners, however, have little reason to be happy at the moment: inflation is eating away at their income. According to the national index of consumer prices, life in Switzerland was 2.4 percent more expensive in March 2022 than in the previous year: the highest inflation rate since 2008 – and it is likely to rise.

Only wage increases of the same magnitude can compensate for this loss of purchasing power. However, a current survey by the Economic Research Center at ETH Zurich (KOF) shows that this will remain a pipe dream. According to the study, which is available exclusively to SonntagsBlick, Swiss companies are planning average wage increases of just 1.6 percent over the next twelve months.

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