Inflation turns 3% growth for German retail into 2% contraction, association says

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BERLIN, July 5 (Reuters) - The German Retail Association left unchanged its forecast for the sector to grow 3% in nominal terms in 2022, but rising inflation meant that turnover would shrink by 2% in real terms, the body said on Tuesday.

The industry group blamed rising inflation and energy costs and poor consumer sentiment for the outlook. It said brick-and-mortar turnover would grow 1.4% in nominal terms and online retail 12.4%. Total turnover would hit 607.1 billion euros.

"The Russian war in Ukraine and COVID-19 lockdowns in Asia are interfering with supply chains, inflation is rising and energy costs are hitting unimagined highs," said HDE head Stefan Genth. "Rising inflation is massively affecting shoppers."

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Reporting by Thomas Escritt; Editing by Maria Sheahan

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