BERLIN, June 26 Reuters German consumer sentiment is set to fall slightly in July, ending a fourmonth streak of rises, as households left uncertain by higher prices and an economy dawdling toward recovery opt to hold onto their money, a survey showed on Wednesday.

The consumer sentiment index published jointly by GfK and the Nuremberg Institute for Market Decisions NIM unexpectedly fell to 21.8 heading into July, from a slightly revised 21.0 in June.

Analysts polled by Reuters had expected a rise, to 18.9.

The index joins other indicators pointing to a bumpy road ahead for Europe39;s largest economy, after Ifo39;s business climate index and HCOB composite PMI also unexpectedly fell this month.

The interruption of the recent upward trend in consumer sentiment shows that the road out of the sluggish consumption will be difficult and there can always be setbacks, said NIM consumer analyst Rolf Buerkl.

Income and economic expectations both fell moderately, while the willingness to buy stagnated at a low level and the willingness to save, already at a high level, grew slightly.

The slightly higher inflation rate in Germany in May is clearly causing more uncertainty among consumers again, which is also reflected in the increase in the willingness to save, said Buerkl. Inflation rose to 2.8 in May on higher services prices.

Sustained recovery will only come when consumers have planning security, which will return if upward pressure on prices is dampened, and clear…