High inflation weighs on Swiss consumer behavior - financial expert analyzes effects and savings efforts

High inflation weighs on Swiss consumer behavior - financial expert analyzes effects and savings efforts

According to a report by www.srf.ch, the higher inflation of the last few years is putting a strain on the Swiss population and is now reflected in consumer behavior.

According to a survey of 1,900 people by the consulting firm Deloitte, financial pressure has increased for two thirds of those surveyed. Although inflation in Switzerland is relatively low compared to other countries, it is not negligible. Households and individuals also often have relatively little in their wallets at the end of the month and have to calculate exactly what is left, according to Deloitte chief economist Michael Grampp.

The survey showed that respondents save on expenses that are not absolutely necessary. Over half of those surveyed reduced spending on restaurant visits, while around 40 percent paid more attention to money when booking holidays or buying clothes.

There are also differences in consumer behavior between German-speaking Switzerland and French-speaking Switzerland. In French-speaking Switzerland, the suffering caused by inflation seems to be higher than in German-speaking Switzerland. This is due, among other things, to a higher tax burden and unemployment rate in French-speaking Switzerland, says Michael Grampp.

The income class also plays a role. The lower middle class, which does not benefit from reduced premiums, for example, is particularly affected.

Despite efforts to save money, thrift does not appear to be bringing about a fundamental change in consumer behavior. However, providers that cater to price-conscious consumers and offer an attractive price-performance ratio could score points.

Perceived inflation influences the Swiss population more strongly in their consumption decisions, even if the effective inflation may be lower than subjectively perceived. This could also influence political demands and promote populist attitudes, say the experts.

The impact on the market and the financial industry could be that providers with an attractive price-performance ratio will be more successful in the future. In addition, political demands and economic initiatives could increasingly be subject to populist tendencies.

Subjective perceptions of inflation do not necessarily correspond to actual inflation across the board, so it is important to consider actual economic facts to make informed decisions.