Costs continue to rise for Swiss manufacturers

Watches are among the items to have increased in price. © Keystone / Gaetan Bally

The cost of producing goods in Switzerland rose 1% year-on-year in April compared to the same month last year.

In April, rising costs were observed for machinery, electrical equipment and watches, according to the Federal Statistical Office (FSO).

The cost of importing many essential items also continues to rise. 

“On the other hand, prices for petroleum products, metals, semi-finished metal products and gas fell,” the FSO stated on Monday.

Rising costs for manufacturers has contributed to a general trend of inflation for consumers.

The strong Swiss franc has spared Switzerland from the worst ravages of inflation, which at its peak rose 3.4% in February year-on-year.

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The Swiss National Bank (SNB) has raised interest rates from negative territory to 1.5% in stages this year.

Further rate rises are expected with SNB Chair Thomas Jordan saying recently that inflation is still not under control. “Monetary policy is still not restrictive enough to anchor inflation in the area of price stability,” he said last week.

Trade unions and charities have complained that people on lower incomes or already trapped in poverty have borne the brunt of price rises.

Many food staples have seen steep price rises, according to price comparison portal Comparis.

Inflation destroyed pay hikes last year, leaving the average Swiss worker 0.9% worse off, says the FSO.