- Destatis
Sales at German retailers dropped unexpectedly on the month in October, whereas a solid increase on the year added to signs that private consumption would remain a key driver for growth in the Euro zone's biggest economy in the final quarter of the year. German retail sales declined 0.4% on the month in real terms in October, following stagnation in the preceding month, according to the Federal Statistics Office. Measured on an annual basis, retail sales edged higher by 2.1%. From January to October, retail sales rose by 2.8% in real terms compared with the same period last year, marking the strongest increase since 1994. German consumers are benefiting from solid employment, increasing wages and nearly stable prices while low interest rates are giving them little incentive to save and cheap energy is freeing up additional cash for spending.
A separate report showed, consumer prices in Germany barely grew in November. In annual terms German CPI climbed 0.4%, following the 0.3% gain in the previous month, remaining well below the targeted level. Using the Harmonized Index for Consumer Prices, the inflation rate ticked up 0.3% in November.
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