Faroese retail sales have been affected by global price hikes, with the sales volume dropping in all three main retail sales categories. From Q3 2021 to Q3 2022, the clothing and footwear category saw a 15% drop in sales volume, ‘furnishings and household equipment’ went down 13% and ‘food and non-alcoholic beverages’ dropped by 9%.
Retail sales figures (listed here in nominal values converted to real values) are divided into the following three main commodity groups: ‘food and non-alcoholic drinks’, ‘clothing and footwear’ and ‘furnishings and household equipment’.
Statistics Faroe Islands recently reported on an 8.8% inflation rate from Q3 2021 to Q3 2022, which was the highest annual inflation rate in 40 years. Inflation tends to have a significant impact on the public’s purchasing power, and the Faroes are no exception.
Retail prices in the ‘food and non-alcoholic drinks’ category increased by 10% from Q3 2021 to Q3 2022. Measured in current prices, retail sales in Q3 2022 were at a similar level as in Q3 2021. However, the sales volume has dropped significantly across all three main retail sales categories. Food and non-alcoholic beverages saw a 9% drop in sales volume.
Retail prices in the furnishings and household equipment category increased by 11% year-on-year, and the sales volume dropped by 13%.
Sales in the clothing and footwear category have also been affected by higher prices. Prices increased by 6% year-on-year, leading to a 15% decline in sales volume.
Nominal prices are the current monetary values of goods in the period measured.
Seasonally adjusted figures are adjusted for seasonal patterns such as recurring seasonal activity patterns. Seasonal adjustment may not be a reliable method in periods with exceptional seasonal fluctuations where monthly figures deviate too much from the regular calendar.
Fixed prices means that the figures are adjusted for price inflation. Using fixed prices may provide reliable measures of the volume of sold goods and services.
The trend describes the trend in the measured figures, adjusted for seasonal effects and error components.
Indices show the year-to-year percentage change, with a base year set at 100. The difference between two years is measured in percentage points. Comparisons with the base year are made in percentages.