Swiss retail sales rose moderately in September, consumer prices unexpectedly fell in October

According to the report from Federal Statistical Office (FSO), turnover adjusted for sales days and holidays rose in the retail sector by 0.6% in nominal terms in September 2019 compared with the previous year. Seasonally adjusted, nominal turnover fell by 0.5% compared with the previous month. 

Real turnover adjusted for sales days and holidays rose in the retail sector by 0.9% in September 2019 compared with the previous year. Real growth takes inflation into consideration. Compared with the previous month, real, seasonally adjusted retail trade turnover registered a decline of 0.3%.

Adjusted for sales days and holidays, the retail sector excluding service stations showed a 1.3% increase in nominal turnover in September 2019 compared with September 2018 (in real terms +1.4%). Retail sales of food, drinks and tobacco registered an increase in nominal and real turnover of 0.3% whereas the non-food sector registered a nominal plus of 2.3% (in real terms +2.9%).

Excluding service stations, the retail sector showed a seasonally adjusted decline in nominal turnover of 0.6% compared with the previous month (in real terms –0.5%). Retail sales of food, drinks and tobacco registered a nominal minus of 0.5% (in real terms –0.6%). The non-food sector showed a minus of 0.3% (in real terms 0.0%).

A separate report from the FSO showed, the consumer price index (CPI) fell by 0.2% in October 2019 compared with the previous month, reaching 101.8 points (December 2015 = 100). Inflation was –0.3% compared with the same month of the previous year. Prices were expected to remain unchanged.

The decrease of 0.2% compared with the previous month can be explained by several factors including falling prices for international package holidays and hotel accommodation. The prices of vegetables and pasta also declined. In contrast, prices for clothing and footwear increased.