Yesterday I spoke to colleague about inflation and I was surprised: In the last 10 years my fixed costs of living in ZH have been reduced by about 500 CHF a month by a deflationary environment and low interest rates: the reductions in rent and TV/phone/Internet have outweighted increases in health care and public transportation expenses by a lot. But what happens when the interest rate for rents (Referenzzinsatz) increases from 1,25% to 7%?
The current Referenzzinsatz:
And how to calculate the changes in rent (it only goes up to 4%):
That’s a nightmare. How can i protect against that? Are there any financial instruments?