German consumer sentiment is projected to fall to another record low in July, as the Ukraine war and interrupted supply chains push up energy and food prices even further, a survey showed today.
The GfK institute said its consumer sentiment index, based on a survey of around 2,000 Germans, dropped to -27.4 points heading into July.
This comes after it posted a short-lived recovery in June with a revised reading of -26.2 points.
"The ongoing war in Ukraine and disruptions in supply chains are causing energy and food prices in particular to skyrocket, resulting in a gloomier consumer climate than ever before," said Rolf Buerkl, GfK consumer expert.
The latest plunge in consumer morale, based on a June 2-13 survey, was however not as severe as an analysts' forecast of -27.7, according to a Reuters poll.
In May, German inflation rose to 8.7% - its highest level in nearly half a century - as the fallout of Russia's invasion of Ukraine built on existing bottlenecks caused by the pandemic.