German consumer sentiment falls to new low in October

By Tuba Sahin

ANKARA (AA) - German consumer sentiment fell for the fourth consecutive month in October, hitting a new record low as high inflation rates and rising energy bills weakened purchasing power, according to market researcher GfK on Wednesday.

The GfK Consumer Climate Indicator in Germany plummeted to minus 42.5 points in October, down 5.7 points from September's revised figure of minus 36.8.

High inflation has caused large real income losses among consumers, significantly reducing purchasing power, Rolf Burkl, a GfK consumer expert, stressed.

According to the latest data, Germany's annual consumer inflation rate rose to 7.9% this August, the highest level since the 1990s' reunification due to increasing prices of energy products and food.

"Many households are currently forced to spend significantly more money on energy or to set money aside for significantly higher heating bills. Accordingly, they need to cut back on other expenses, such as new purchases," Burkl said.

Income expectations dipped 22.4 points from a month ago to a record low of minus 67.7 points in October.

Economic expectations dove 4.3 points to minus 21.9 points in the same period, the lowest level since May 2009.