Germany retail sales surprisingly drop in July

By Tuba Ongun

Germany's retail sales unexpectedly decreased 0.8% month-on-month in July, as persistent inflation continued to dampen consumer demand, official data showed on Thursday.

The market expected the real (price-adjusted) turnover of retail enterprises would hike 0.3% in July, following June's revised 0.2% decline.

Food sales, on the other hand, grew 2% in the same period, according to the Federal Statistical Office (Destatis).

On a yearly basis, retail sales plunged 2.2% in July, accelerating from a 0.9% decrease in June, Destatis data showed.