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Easing inflation worries improve German consumer confidence

GERMAN consumer confidence rose to its highest level in more than a year as easing inflation encouraged shoppers, according to data from research group GfK yesterday.<br /><br />The GfK consumer sentiment indicator, rose to 3.5 going into August from an upwardly revised reading of 3.0 for July.<br /><br />&ldquo;Inflation is fading and people have more money in their pockets,&rdquo; GfK said. <br /><br />Indeed, June figures for the downward trend in broad money supply (M3) and private-sector credit growth in the eurozone suggest inflation will undershoot the European Central Bank&rsquo;s (ECB) target for the next two years.<br /><br />M3 growth in the 16-country bloc fell to 3.5 per cent, the lowest rate since the start of the euro in 1999.