Germany's retail sales increased 1.2% month-on-month in August 2026, reversing a 3.4% decline in July and recording their fastest growth since June 2025. The gain fell short of market expectations for a 1.5% increase. July's pullback had been weighed by higher consumer and energy prices as well as the start of summer holidays. Retail sales fell 0.4% from a year earlier, narrowing from a 2.5% annual decline in July but missing forecasts for a 0.1% increase.