Inflation: What can other nations learn from this European outlier?

Remains low in Switzerland

Inflation has surged to levels not seen in decades due to rising commodity prices, supply chain bottlenecks and tight labour markets. These factors apply to most developed countries, but not to Switzerland where inflation remains low. GianLuigi Mandruzzato, from EFG Asset Management, compares Swiss inflation to that in the US and the eurozone and draws some policy implications.

The median inflation rate across developed economies rose to 5.6% in February, a five percentage point increase from twelve months earlier. In absolute terms, inflation has returned to levels last seen several decades ago, and in the eurozone, inflation surged to 7.5% year-on-year in March. However, Switzerland is an exception; although higher than in the recent past, March's reading showed inflation had risen only 2.4% year-on-year. Retail sales fall as consumer confidence tumbles to 2008 lows The drivers of surging inflation are generally accepted to be commodity prices, supp...