Right now, RE prices are falling some, and costs of renting apartments are low, too - making it cheaper to live. I know a guy who earns below working class level, who just moved into a brand new 90m2 apartment in central Copenhagen. A few years ago, guys like him wouldn't be able to afford that.
I don't know how it works in Zürich, but there are many mechanisms to consider, and people are not complaining. I just reviewed the Danish inflation numbers, which are trustworthy, and yes, they're high. Very high. 3.1% annually, up from 1.7% :-) But compared with 10 years ago, we can afford so much more, so there's no reason to complain. If you look at the amount of luxury food in the shops, it has definitely increased a lot during the last 10 years.
My favorite bike shop has switched from selling average level Shimano equipment to selling high-class Shimano equipment - at the entrance there's now a $6300 bicycle hanging. Will that influence inflation numbers? Yes, of course. When a bicycle costs $6300 instead of $1000, prices have gone up - but so does the product. In Norway, the release of a new Harry Potter book meant a huge increase in the average price of books, which affected national inflation numbers. |
