German import prices, retail sales fall in October

By Maria Martinez

BERLIN, Nov 28 (Reuters) - German import prices fell in October, though less than forecast, while retail sales unexpectedly decreased in the same month, data from the statistics office showed on Friday.

Retail sales fell by 0.3% on the month, although analysts polled by Reuters had predicted a 0.2% increase.

Germany's retail sector expects modest annual growth this holiday season, with sales forecast at 126.2 billion euros ($146.18 billion) for November and December, according to the retail association HDE.

A survey by the Ifo institute showed that around one in four companies in the retail sector anticipated business will be poor this Christmas season.

"Retailers' expectations are subdued. Many of them are entering the most important sales period of the year without any great hopes," said Klaus Wohlrabe, head of surveys at Ifo.

Import prices decreased by 1.4% year on year in October, while analysts polled by Reuters had predicted a 1.6% decrease.

Germany will publish national inflation data for November later on Friday, with the rate expected to rise to 2.4% from 2.3% the previous month.

($1 = 0.8633 euros)