German consumer morale drops heading into Sept.

The mood among German consumers darkened heading into September.

A survey from the GfK institute revealed accelerating inflation and rising cases made them more hesitant to buy.

GfK consumer expert Rolf Buerkl:

"High inflation is a sensitive issue, especially in Germany. We know from past experience that this always has a negative effect on consumer morale. Apart from rising infection numbers, a drop in vaccinations and discussions on regulations, rising prices also play a role."

The institute said its consumer sentiment index, based on a survey of around 2,000 Germans, dropped to -1.2 points for September, worse than analysts had forecast.

Germany's harmonised annual consumer prices rose over 3 percent in July, hitting a 13-year high.

And fuelling a debate about whether the increase in the cost of living will persist.

GfK's consumer climate indicator forecasts the development of real private consumption in the following month.

A value below zero indicates a drop compared with the same period a year ago.

For now, the institute says many Germans feel concerned about the rising number of cases.

And the speed of the country's vaccine rollout.

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