German consumer morale rises as inflation worries ease

German consumer morale rose sharply heading into May, a key survey showed Wednesday, as concerns eased about the impact of high inflation on Europe’s top economy.

Pollster GfK said its forward-looking survey of around 2,000 people climbed 3.6 points to reach minus 25.7 points, the seventh consecutive monthly increase.

Improving sentiment was driven by lower energy prices, government relief measures aimed at tackling high costs, and recent wage deals struck between various industries and workers, GfK said.

“More and more households are assuming that feared losses in purchasing power due to inflation will turn out to be much milder,” the pollster said.

The survey found respondents were more optimistic about their income prospects and the broader economy.

But GfK consumer expert Rolf Buerkl cautioned that the gauge was “still below the pre-pandemic level seen about three years ago”.

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