Relevant explanations why inflation is much lower in Switzerland than in the eurozone – Natixis

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Inflation in Switzerland is much lower (around 3%) than in the eurozone. How is this achieved? Analysts at Natixis sort out possible explanations for this low level of inflation in Switzerland.

“The rise in inflation, after the COVID-19 crisis, after the rise in energy prices due to the war in Ukraine and the halt in Russian natural gas exports, has been much smaller in Switzerland than in the eurozone. This is due to: The strength of the Swiss franc; The limited reaction of wages to inflation in Switzerland; Switzerland’s low energy dependence; The independence for agricultural products.”

“Can the eurozone learn from the Swiss example in terms of economic policy? Probably yes regarding low wage indexation, energy independence and independence for agricultural products.”

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