Swiss workers face sharpest loss in real wages in 80 years

Bloomberg

Swiss workers face the largest loss in real wages since 1942, with the country likely to dodge a wage-price spiral
due to low salary increases, according to a UBS survey.
Employers lifted pay by an average 1.1% this year and intend raise them by 2.2% in 2023, 290 surveyed companies told UBS. Taking inflation into account, this translates into a real loss of 1.8% in 2022, followed by a slim 0.1% gain next year.
“Wage increases of just over 2%, well below current inflation level, are unlikely to put employees in a festive mood,” said Daniel Kalt, UBS’s chief economist for Switzerland. “That restraint suggests no wage-price spiral and is unlikely to fuel
inflation further.”
Consumer-price growth in Switzerland unexpectedly slowed in September and October, but remains above the Swiss National Bank’s target for the ninth straight month. SNB President Thomas Jordan has repeatedly warned of second-round effects and hinted at further interest rate hikes.