BERLIN (Reuters – German shoppers kept their spirits up heading into November despite the rising inflation rate, according to a Wednesday survey.

GfK Institute said that its November consumer sentiment index, which was calculated from data from around 2000 Germans, increased to 0.9 point, from the revised 0.4 point a month ago.

Comparing the reading to a Reuters prediction for -0.5

But, the institute said that it was unlikely that these good feelings would last long if prices keep climbing, as this trend could also slow down a fundamental recovery of consumer sentiment.

Rolf Buerkl from GfK said that Germans seem to expect even greater price rises. This is why it’s prudent for them to purchase now, to reduce the risk of higher prices.

According to German government data, inflation rose at a faster pace in September than anticipated, with a 4.1% increase year-on-year, compared to 3.4% in August.

A source said that the government anticipates consumer price inflation rising to 2.9% in 2018, according to Reuters. On Wednesday, Economy Minister Peter Altmaier presented the latest economic forecasts at a press conference.

GfK stated that while the tendency to purchase increased slightly, income and economic expectations are on the decline.

The confidence of consumers in Europe’s biggest economy is evident. But, the fear that companies will cut production because they have problems with their supply chains continues to haunt many people who are worried about losing their jobs.

NOV 2021 OCT-2021 NOV 2020

Consumer Climate 0.9,0.4 -3.2

Consumer climate components OCT 2021 SEP 2020 OCT 2020

Willingness to Buy 19.4 13.5 37.0

– income expectations 23.3 37.4 9.8

Business cycle forecasts 46.6 48.5 7.

NOTICE: The survey period ran from September 30 through Oct. 11, 2021.

The indicator of consumer climate forecasts real consumption growth over the coming month.

A reading of zero indicates a year-on-year increase in private consumption. If the value is below zero, it indicates that there has been a decline in private consumption compared to the previous year.

GfK says that a change of one point in the indicator equals 0.1% annual change in private consumption.

The indicator of “willingness” represents the mix between negative and positive responses to the question “Do you believe now is the best time to purchase major items?”

The Income Expectations sub-index measures household financial expectations for the next 12 months.

An additional index of business cycle expectancies reflects an assessment by those who were questioned about the economic outlook for the next twelve months.

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