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Swiss Wage Pressure Won’t Get Out of Control, Credit Suisse Says

  • Inflation will slow to below 1% by end 2023, economists say
  • Impact of prices on consumers hasn’t hurt purchasing power

Swiss inflation is likely to fall back gradually to below 1% by the end of 2023 as pay pressures in the country remain in check, according to economists at Credit Suisse Group SA. 

“There is a low risk of a wage-price spiral,” Claude Maurer and Emilie Gachet wrote in a report published on Tuesday. “Employees are generally willing to forgo maximum wage increases in the short term -- and particularly in times of economic uncertainty, such as the present -- in order to reduce the risk of unemployment and thus safeguard their long-term prosperity.”