Perceived inflation rises again: Olive oil and men’s shoes more expensive in October

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Prices of daily goods rose again in October. In Switzerland, it increased by 2.2 percent from October 2022, according to the Comparis consumer price index. This represents an increase of 0.2 percent compared to last month. This means that the 0.2 percent price drop in that period has been rebalanced.

Compared to September, the Swiss need to fill their pockets further, especially in printed goods (+12.5 percent), men’s shoes and red wine (+3.5 percent). There is also a high price premium for olive oil. “Water scarcity, drought and heat have led to huge production losses in Spanish Andalusia for the second year in a row,” says Comparis financial expert Dirk Renkert (58). The price of edible oil increased by 3.6 percent compared to September, and even increased by 24 percent compared to the previous year. In general, prices of edible fats, edible oils and margarine increased by an average of 0.8 percent annually.

The impact of rent increases is only seen in November

But there is also good news: The price of sugar fell by 3.2 percent compared to the previous month. Apartment repair materials (-2.9 percent), mineral water (-2.7 percent), hotels (-2.3 percent) and tea (-2.2 percent) also became cheaper. Additionally, Switzerland continues to fare well in terms of inflation compared to other European countries. According to Eurostat, the statistical office of the European Union, prices in euro countries increased by 2.9 percent in the same period.

The Comparis consumer price index measures consumers’ perceived inflation in collaboration with the Center for Economic Research (KOF) at ETH Zurich. It looks at regularly consumed items such as food, medicine, and clothing. The inflation rate is adjusted for rents or other durable goods. Perceived inflation is higher than the official inflation rate from the Federal Statistical Office (BFS). The national consumer price index (LIK) increased by only 1.7 percent compared to the same month last year.

“The modest increase in LIK probably surprised some people, as the first rent increases for existing tenants went into effect in early October,” Renkert said. However, BFS will only consider increases quarterly and not monthly. Therefore, it does not seem possible to see the effects of the increases until November.

Source :Blick