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All stories that have been tagged with Inflation
“Monetary policy in the eurozone will remain restrictive for the time being”
- Monetary Policy
- KOF Bulletin
- Inflation
- Business Cycle
KOF economists Alexander Rathke and Alexis Perakis analyse the interest-rate decisions taken in the eurozone, the United States and Switzerland. They also comment on the political risks posed by the snap elections called in France.
Why do households perceive inflation differently than firms and forecasting organisations?
- Inflation
- KOF Bulletin
Swiss households have been asked about their numerical inflation expectations as part of the SECO consumer sentiment surveys conducted since the beginning of 2023. Initial results show that households’ inflation expectations are higher than those of forecasting organisations and firms as well as the official inflation rates. Despite these distortions, the survey data provides valuable information on factors such as the anchoring of inflation expectations.
“The battle against inflation has not yet been won”
- Inflation
- KOF Bulletin
- Monetary Policy
Alexis Perakis, monetary policy expert at KOF, talks in this interview about his predictions for inflation, interest rates and the Swiss franc exchange rate this year. He considers the current debate about interest-rate cuts to be premature.
Demographic change: what are the implications for inflation?
- Inflation
- KOF Bulletin
Switzerland’s population is ageing. This article attempts to qualitatively assess the impact that this trend has on inflation. Its immediate effects are likely to be moderate. At the same time, there are risks: inflation could turn out to be higher but, surprisingly, it could also be lower.
How do firms determine their prices?
- Inflation
- KOF Bulletin
New survey data provide insights into the price-setting behaviour of Swiss companies. They shed light on price setters’ motives when they are reviewing, forming and adjusting their prices, as well as the reasons why they do not adjust their prices. In particular, they illustrate how prices are set so as to take account of the competing interests between customers and competitors.
“Inflation will remain high by Swiss standards in 2023”
- Inflation
- KOF Bulletin
KOF expects interest rates to continue to rise this year in the euro area, the United States and Switzerland. It predicts that inflation will eventually fall but will remain high. The two economists Alexander Rathke and Pascal Seiler explain why in an interview.
Inflation rates remain high
- Inflation
- KOF Bulletin
Inflation in Switzerland, the euro area and the US is at historic extremes; the upward trend in prices is gaining breadth.
Inflation picks up significantly worldwide but remains moderate in Switzerland
- KOF
- Energy
- Inflation
- KOF Bulletin
Prices in the euro area and especially in the United States have risen sharply recently. Inflation momentum has also picked up in Switzerland. However, KOF expects the upward trend in prices in Switzerland to weaken towards the end of the year.
Companies expect to see falling real wages and higher inflation in the long term owing to the war in Ukraine
- KOF
- Inflation
- KOF Bulletin
- Surveys
Russia’s invasion of Ukraine has lowered Swiss companies’ expected wage growth and, at the same time, raised their inflation forecasts. Small and medium-sized enterprises in particular, as well as companies in the manufacturing sector, expect to see higher prices in the long run. In purely arithmetical terms, the information provided by these firms translates into negative real wage forecasts, which are even more negative than they were before the war in Ukraine.
Monetary policy: rising inflation puts central banks under pressure to act
- KOF
- Monetary Policy
- Inflation
- KOF Bulletin
The continuing rise in prices is forcing the central banks in the United States and Europe to reconsider their highly expansionary monetary policies. The Swiss National Bank will probably only reverse its policy stance once central bankers in the euro area have implemented their first interest-rate hike.
Poorer households particularly affected by rising healthcare costs
- Inflation
- KOF Bulletin
- Health care
Directly paid healthcare costs in Switzerland decrease as a share of income as income increases, whereas in other countries it is typically the other way round. This is due not to rising healthcare costs but to the way healthcare expenditure is funded.
“Central banks are powerless to prevent supply shortages”
- Monetary Policy
- World Economy
- Inflation
- KOF Bulletin
KOF Director Jan-Egbert Sturm talks in an interview about the latest price increases in almost all currency areas, central banks’ potential counter-strategies and why inflation in Switzerland remains moderate.
Is inflation out of control?
- Business Cycle
- Monetary Policy
- Inflation
- KOF Bulletin
Inflation rates have risen significantly over the past year. In the United States in particular, inflation is increasingly becoming a problem to which the Federal Reserve (Fed) must respond. Inflation has also risen sharply in the euro area. In Switzerland, the situation is still somewhat less serious.
“Inflation will come down again”
- Inflation
- Monetary Policy
- KOF Bulletin
KOF economist Alexander Rathke talks about rising prices in the United States and Europe, the special case of Switzerland and the challenges of monetary policy over the coming years.
Rising inflation: why is it only temporary, and what does the pandemic have to do with it?
- Inflation
- KOF Bulletin
Prices have risen recently in both the United States and Europe. But much of this price increase can be explained by the COVID-19 pandemic and is therefore likely to be only temporary.
How does inflation come about?
- Inflation
- KOF Bulletin
Recently there have been increasing warnings of a resurgence of inflation. This paper presents the results of an empirical study of the main factors that have affected inflation over the past two decades.