German Retail Sales Slump on Inflation Fears

Analysts had expected monthly seasonally adjusted retail sales data, which was drawn up by the nation's statistics office, to drop by a more modest 0.3 percent in July. On a yearly basis, retail sales in Europe's biggest economy were unchanged.

The July fall in retail sales was despite a continuing improvement in the German labor market.

However, German consumer confidence fell to the lowest level in more than five years in September, a key forward-looking survey released.