2019.11.0108:05:00UTC+00Swiss Consumer Prices Fall For First Time Since Late 2016

Swiss consumer prices declined for the first time since late 2016 in October, the Federal Statistical Office reported Friday.

Another report showed that retail sales recovered in September on non-food product turnover.

Consumer prices decreased 0.3 percent on a yearly basis in October reversing a 0.1 percent rise in September.

This was the first decline since November 2016, when prices were down 0.3 percent. Economists had forecast prices to remain flat in October.

The Swiss National Bank forecast 0.4 percent inflation for this year and 0.2 percent for 2020.

Month-on-month, consumer prices dropped 0.2 percent after falling 0.1 percent in September. The decline was largely driven by falling prices for international holiday packages and hotel accommodation.

Core consumer prices dropped 0.1 percent in October from September but gained 0.2 percent on a yearly basis.

Real retail sales expanded 0.9 percent on year in September, reversing a 1 percent fall in August. Sales of food, beverages and tobacco climbed 0.3 percent and non-food sales advanced 2.9 percent.

On a monthly basis, retail sales fell 0.3 percent in September but slower than the 1.1 percent drop seen in August.