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German retail sales fell sharply in April

German retail sales dropped by 5.4% in April after rising by 0.9% previous month and well below expectations for 0.2% fall.

Strong rise in prices, especially for food, hurt consumers and was the main driver of the sharp fall in retail sales last month, along with supply problems that hit retailers, due to lockdowns in China, with many not receiving all goods they ordered, causing a shortage of certain goods that contributed to higher price

Grocery retailers faced the biggest decline in sales in nearly three decades in May, registering a drop of 7.7%, as food prices were primarily driven by rising inflation which hit its highest level in almost fifty years in May.

On the other side, trade in clothing, shoes, textile and leather goods, as well as outlets and department stores, saw significant increase in April, compared to the pandemic period a year before, but were significantly lower from March.