Price level indices

Price level indices compare the price level between several countries at a particular time. They are drawn upon for information by decision-makers in national politics and also by private individuals, e.g. for alimony payments across international borders or the conclusion of wage agreements abroad.

In terms of the GDP, the price level in Switzerland in 2018 was 145.8 index points. This means that in terms of the GDP, overall Switzerland is in 3rd place behind Iceland (154.3) and Norway (147.7).

The price level can also be considered for individual product groups (analytical categories). The following illustration shows this using Switzerland and its neighbouring countries.

In 2018, a particular basket with identical benefit (from the “transport” product group) cost CHF 115.6 in Switzerland, CHF 106.2 in Germany, CHF 107.2 in France, CHF 101.2 in Italy and CHF 107.4 in Austria. It cost CHF 100 on average in the 28 member states.

Example: Mr Müller from Italy has accepted a new job in the Italian-Swiss trading company and will work in Switzerland in the future. He has agreed with his employer that the level of his gross salary will be adapted to Swiss prices. The previously agreed salary of CHF 5000 should be adapted. For this purpose, the salary is divided by the Italian price level and then multiplied by the Swiss price level. They have agreed on the aggregate level "individual consumption expenditure" for the calculation as this reflects the expenditure for consumer goods by private households (excl. charges for social insurance and taxes).

CHF 5000: 102 x 167 = CHF 8186.27

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Federal Statistical Office Section Prices
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