German consumers demoralised by inflation: GfK

0 Comments | AFP, October, 2007

FRANKFURT (AFP) — Widespread German price increases, including those of butter and electricity, are starting to weigh heavily on consumer confidence, a monthly poll by the GfK institute showed Friday.

Its barometer fell to 4.9 points from 6.7 at the end of September, when it had already fallen for the second month in a row.

The findings "not only recorded a downturn in both economic and income expectations, but also in the propensity to buy," a statement said.

"Restraint is evident everywhere," it added.

The latest drop was much sharper than expected, with an analyst survey by Thomson Financial forecasting a decrease to 6.4 points.

Consumer morale has suffered in the past few months from fears of inflation, a reaction to sometimes drastic...