There are nativity scenes carved of wood, ornaments, candles, children's toys, gingerbread cookies in numerous shapes, sausages and mulled wine sipped in painted glass mugs.

The Nuremberg Christkindlesmarkt is one of the oldest and most storied festive markets in the country.

The red-and-white-roofed booths, rich and spicy odors of treats, and mulled wine-enhanced cheer are back to entice Nurembergers and tourists to the city again this year. The market has been formed every year since at least 1628, with breaks for the Pandemic and World War II, according to city historians.

Ursula Kbl, 73, claims she never missed the market until 2020, when it was shut down to prevent the spread of the coronaviruses.

City historians say the Nuremberg Christmas market has formed annually since at least 1628.Credit...Laetitia Vancon for The New York Times
What can you find at the market? Christmas tree ornaments, of course, but also a lot of other wares. Credit...Laetitia Vancon for The New York Times

Vendors predict that they won't make out as well as they did in the previous year. More than a dozen vendors gave up their coveted spots because of high costs and staff shortages, leaving gaps in the lineup of stalls that looked like missing teeth.

Germany has roughly 500 Christmas markets, which have become more important as the national mood has waned. Many of them are running again without Covid restrictions, but until they opened at the end of November, it was not certain if the economic situation and energy crisis would affect the mood.

New energy-saving rules that prohibit the exterior lighting of advertisements, public buildings and even landmarks have caused towns and cities in Germany to be dark. The markets, made up of cloth, wood and strings of energy efficient LEDs, face a challenge to encourage commerce to thrive. The first indications suggest that they are succeeding. The crowds are large and enthusiastic, even though people tend to spend less at the stalls.

Marcus Knig said that many people missed the market. After two and a half years of Pandemic, it is just a balm for our damaged souls.

Even with the electricity crunch brought on by Russia’s attack on Ukraine, city administrators decided not to pare down this year’s festivities. This tree is lit with LED lights.Credit...Laetitia Vancon for The New York Times
“Many of us missed this market,” said Marcus König, Nuremberg’s mayor. “It’s just a balm for our dented souls after two and a half years of pandemic during which there was very little cultural life.”Credit...Laetitia Vancon for The New York Times

The Christkindlesmarkt is part of Nuremberg's DNA and has had a detrimental effect on the city's coffers, which rely on the market.

The market had 2.2 million visitors who brought in an estimated 180 million euro. This year's haul is likely to be less. Despite not having a live music stage this Christmas, the market has been well visited by a mix of Nurembergers and tourists from other countries.

Patrick Arens, vice president of a trade association representing vendors at Christmas markets across Germany, said that people are eager to go out and socialize after the break. Mr. Arens sells his wares at the Christmas market.

Ms Kbl was out with friends. She said that she forgets about cold feet when she comes out and mingles. Even though the price had gone up to 4 from 3.50, she was planning on having at least one glass of wine to warm up.

Mulled wine is a popular drink at the market, despite the price of a mug rising to €4 (about $4.25), from €3.50 in 2019.Credit...Laetitia Vancon for The New York Times
Vendors estimated that this year they will not make out as well as they did in 2019. And for the first time in modern history, more than a dozen vendors gave up their prized spots because of high costs and staff shortages.Credit...Laetitia Vancon for The New York Times

Kurt Leithner said, "I notice people have changed how and what they buy." Customers who used to pay 30 for a dollhouse wardrobe are now more likely to use smaller items that cost less. He said that one person has become more thrifty.

A booth that sells ornate wood decorations has a couple of people helping out, and one of them said, "You always need mulled wine and sausages." She said, "But this stuff you don't actually need to live"

More than two-thirds of Germans told pollsters at McKinsey that they expected inflation to drive consumer goods prices higher, and nearly 60 percent said increasing prices were their main worry. A majority of people said they were going to save by buying less Christmas presents, and a minority said they would forgo gifts altogether.

The rising cost of living does not diminish the joy of getting together, of exchanging news and gossip, and of living their normal lives.

Teresa Windschall, right, was chosen from among 12 applicants to serve as the 2021-22 Nuremberg Christkind.Credit...Laetitia Vancon for The New York Times
Kurt Leithner helps his daughter run a booth selling dollhouse furniture. “I notice people have changed how and what they buy,” he said. Credit...Laetitia Vancon for The New York Times

Even with the electricity crunch brought on by Russia's attack on Ukraine, Mr. Knig and other city administrators decided not to scale back this year's festivities. Since 2008, outdoor heating has been mostly banned in the city.

There are a number of rules in the market. The main market in Nuremberg does not play recorded music or items made outside of the region.

Vendors have to apply in February in order to get a spot on the wait list. There has been a Children's Christmas market since 1999.

According to Marco von Dobschtz-Dietl, who runs the market, 20 vendors canceled this year because of high costs, staff shortages and coronaviruses.

Klaus Schrdel, 59, has been a fixture at the market for three decades, selling traditional zwetschgemnnla, good-luck avatars made out of thin wire and prunings. He sees the market as his hobby because he spends four to five weeks running a stall there. He and his wife take time off from their jobs in December to work at the market as they prepare the odd little keepsakes.

Werner and Liane Humbs have helped to sell carved wooden Christmas ornaments and nativities at the market for more than a decade.Credit...Laetitia Vancon for The New York Times
Zwetschgemannla, traditional good-luck avatars made out of thin wire and prunes. Credit...Laetitia Vancon for The New York Times

He said it was a hobby for him. Because his product costs less than 10, he is doing well, but prices for the fruit he uses as a raw material have doubled.

American tourists have been a steady source of sales even for more expensive goods.

On a recent chilly night, Paul, his wife, Carrie, and friends were in from Austin, Texas, and were delighted with the sights and smells. They were prepared to buy.

He chuckled and said that they would find out if they stick to the plan.

Germany’s roughly 500 Christmas markets are an integral part of the holiday calendar, and have renewed importance as weather vanes of the national mood.Credit...Laetitia Vancon for The New York Times