Mobility and housing prices rise by 2.6%

(Keystone-ATS) Prices linked to mobility and housing rose by 2.6% in May compared to the same month in 2023. This was revealed by the latest quarterly MAb index, published today, according to which Italian-speaking Switzerland recorded the highest increase in prices (+ 3.0%).

Compared to February, prices nationwide increased by 0.8%. By comparison, the national consumer price index (CPI) of the Federal Statistical Office (FSO), which is based on a representative basket of over 1,000 goods and services, increased by only 1.4% year-on-year and 0.6% month-on-month.

In the last three months, rents alone have risen 1%; compared to the same month of the previous year, the percentage is even 3.4%, indicates a press release today from Comparis, which has been publishing the MAb since March in collaboration with the Economic Research Center (KOF) of the Federal Institute of Technology in Zurich.

Over the last 12 months, homes have become significantly more expensive: this is due to the increase in rents on existing rental contracts following the two increases in the reference mortgage rate in the last year.

Furthermore, it is explained, the growing shortage of rental housing, especially in cities, leads to a low vacancy rate and therefore to a continuous increase in costs for newly rented apartments. “At the moment there are no improvements,” comments Comparis finance expert Dirk Renkert, quoted in the note.

In the housing sector, the MAb index records – in addition to the rental trend – the price of electricity, which grew by 17.8% on an annual basis, while in the mobility sector the prices for petrol or diesel are considered, for the car and for public transport tickets.

Concretely, an increase in the MAb price index of 2.6% means that if last year a family spent 2,500 francs a month on rent, 1,000 on the car and 200 on tickets for public transport, costs have now increased by almost 96 francs, which corresponds to around 1,150 francs in a year.

For an average family in Switzerland, housing and mobility account for around 40% of the daily consumption budget, it is recalled. This is why price changes in this area are particularly painful for consumers.

In the last 12 months, the highest price increase was felt by single-person households aged 65 or over, who currently experience an price increase of 3.0% compared to last year. Considering income, compared to last year the cost of living has increased especially for the lower bracket (+3.1%).