Over the past 15 years, inflation in Switzerland has, on average, been almost 2 percentage points lower than in the euro area. This note shows that two-thirds of the Swiss inflation gap with the euro area was driven by goods, in particular food and energy, while the remaining third was driven by services. The note also shows that inflation was lower in Switzerland than in the euro area primarily because of smaller price increases rather than different consumption habits. Swiss inflation has been relatively low over the past 15 years, both in historical terms and in comparison with other countries. For a comparison with euro area countries, the most suitable yardstick is the harmonised index of consumer prices (HICP).
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