Price Level Divergence Examples Switzerland vs Germany

Today I was once again hit by how much different the swiss price level is compared to Germany. Take the example of the company Gross Baumaterial AG which trades in building materials. Then compare it with the germany company Toom Baumarkt in Konstanz (swiss-german border). Notice any differences? It seems crossing the german border makes a product +100% more expensive.

Graph 1: Gross Baumaterial AG – Werbefax 044 500 92 02  17.1.2015SNB_Swiss_Price_Level_3_Baumaterial

Graph 2: Toom Baumarkt (Konstanz) Deutschland EUR Prices valid from 03.01.2015-10.01.2015SNB_Swiss_Price_Level_1_Baumaterial

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