Press release: Prices of leisure products are on the rise, but those of …

17.10.2024 – 00:30

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Press release

Leisure price comparison index

Prices of leisure products are rising, but electronics prices are falling

Prices of leisure products increased by 1.4% in the space of a year. These are the results of the Comparis leisure price index, which measures the increase in prices occurring in the leisure and culture sectors, as well as in the hotel and catering industry and travel. Conversely, the prices of electronic items such as computers and televisions have fallen significantly, especially in the long term: in five years, they have fallen by more than 20%. “One of the primary factors in the decline in electronics prices is the fierce competition between online retailers and large merchants in the sector,” explains Adi Kolecic, Comparis expert. According to him, mobile devices such as smartphones or tablets increasingly take on the functionalities of traditional computers, but also, for some of them, televisions or audio devices. This results in a decline in demand for electronic items.

Zurich, October 17, 2024 – In September 2024, prices for leisure products increased by 1.4% compared to the same month of the previous year in Switzerland. These are the results of the leisure price index from the internet comparis.ch. It illustrates the evolution of inflation in the areas of leisure and culture, as well as catering and travel in Switzerland. The Swiss consumer price index (CPI) established by the Federal Statistical Office (FSO) currently reflects an annual increase of 0.8%*. However, in the short term, the prices of leisure items have fallen: since August 2024, the prices of the index basket have fallen disproportionately, by precisely 1.7% (CPI: -0.3%*).

In the short term, travel pulls down the leisure index

“Travel prices are particularly subject to seasonal fluctuations, which explains the drop in the leisure index compared to the previous month,” explains Adi Kolecic, Comparis expert. For example, consumers paid 7.1%* less for air transportation than in August. Package travel prices also fell, by 7.0%*. The parahotel industry – which includes holiday apartments, campsites and even youth hostels – recorded the most marked short-term price drop, coming in at -11.2%*.

In the long term, however, leisure prices have increased significantly. Since September 2019, the Comparis leisure price index has increased by 7.6% (CPI: +6.0%*).

In e-commerce, the price war drives down prices

For those who spent last month on radio and TV reception, the bill was significantly higher than a year ago, since prices in this sector increased by 7.8 %*. This increase is mainly due to the rise in prices of streaming services such as Netflix and Spotify. Prices for mountain railways and ski lifts also increased, by 4.1%*. They thus climb onto the second step of the inflation podium. Package travel prices (+3.4%*) recorded the third largest increase.

On the other hand, electronic items have become less expensive: twelve months ago, consumers paid much more for computers and accessories than in September 2024. According to the Comparis analysis, these prices have fallen by 7. 9%* over one year. Prices of televisions and audio-video devices recorded the second largest drop (-6.9%* compared to September 2023).

“One of the primary factors in the decline in electronics prices is the fierce competition between online retailers and large merchants in the sector. In addition, the relocation of production to Asia made it possible to reduce costs,” says A. Kolecic. In the long term, the fall in electronics prices is even more pronounced: those of computers and accessories have fallen by 22.6%* in five years. Televisions and audio-video devices are 18.4%* cheaper than in September 2019. Over the past 20 years, electronics prices have even fallen by around 80%.

“Mobile devices such as smartphones or tablets increasingly take on the functionalities of traditional computers, but also, for some of them, televisions or audio devices. This results in a drop in demand for electronic items,” explains the Comparis expert. The PC and consumer electronics markets have been particularly volatile in recent years. “During the Covid pandemic, demand for electronic items has skyrocketed due to remote working and home entertainment. Subsequently, sales declined sharply, especially those of PCs,” explains A. Kolecic.

Highest inflation for people aged 65 or older living alone

Households with a person aged 65 or over have experienced the highest increase in prices over the last twelve months. The rate of inflation as they feel it compared to last year amounts to 1.9%.

However, in September, the cost of living fell by 1.5% compared to the previous month for this category of the population.

If we stick to the figures, among all households, it is couples with children who feel the increase in costs the least. With an index set at 108.0 points, the inflation felt by people in this category amounts to 1.2% over the last twelve months.

* Leisure price comparison index

The Swiss Consumer Price Index (CPI) measures price developments based on a representative basket of around 1,050 goods and services. Inflation is characterized by a persistent decline in monetary value or an increase in the average price level. The CPI has 12 main categories, including long-term investments and rents. On the other hand, major expenditure items, such as social insurance premiums or direct taxes, are not taken into account. The CPI therefore does not reflect inflation as it is actually felt by consumers.

The Comparis leisure price index, established in collaboration with the Economic Research Center (KOF) of the ETH Zurich, reflects the inflation occurring in the areas of leisure and culture, hotels and restaurants and travel exclusively. In addition, Comparis explicitly takes into account factors such as household type, income category and language region.
Important note: numbers marked with

were calculated directly by the Federal Statistical Office (IPC/OFS) or are based on figures from the IPC/OFS.
The data underlying the Comparis leisure price index come from the Swiss consumer price index (
IPC
) as well as the Household Budget Survey (HBS). The weights for the new price indices are established based on the
EBM
. The
Laspeyres chain indices

with the CPI price series. The base index is that of December 2017 (corresponds to 100%).

Adi Kolecic Expert Mobilité et Voyages Téléphone: +41 78 884 11 54 E-Mail:  [email protected] comparis.ch

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