'It could be devastating': Deutsche Bank warns 5% inflation may get WORSE as prices rise at fastest rate since 2008 Great Recession and GOP blame Biden's stimulus programs

Overall consumer prices rose 0.6% in May, totaling 5% over the prior 12 months and blowing past expectations
It is the fastest rate inflation has risen since August 2008 during the Great Recession
Core inflation, excluding food and energy, was up 3.8% for the year in fastest increase since 1992
Republicans blame freewheeling Fed monetary policy and Democrats' massive federal spending
Shortages in labor and commodities, and surging consumer demand are also considered factors
General Mills, Coca-Cola and Hormel all expect to raise prices as the cost of raw goods rises
Chipotle is jacking up menu prices 4% to offset higher wages as it tries to attract workers
Fed chairman insists the inflation effect is temporary and will dissipate later this year

By Keith Griffith For Dailymail.com and Wires
https://www.dailymail.co.uk/news/article...-rise-2008.html
Published: 08:47 EDT, 10 June 2021 | Updated: 15:30 EDT, 10 June 2021


Deutsche Bank has issued a stark warning on inflation, after consumer prices in the U.S. rose at a faster rate in May than any time since the Great Recession.

In its report Thursday, the government said that overall consumer prices rose 0.6 percent in May, bringing the annual inflation rate to 5 percent, the highest level since August 2008.

Core inflation, which excludes volatile energy and food costs, rose 0.7 percent in May after an even bigger jump in April, and is up 3.8 over the past 12 months, the quickest rate since 1992.

In a report on this week, Deutsche Bank wrote: 'Rising prices will touch everyone. The effects could be devastating, particularly for the most vulnerable in society.'

'Few still remember how our societies and economies were threatened by high inflation 50 years ago. The most basic laws of economics, the ones that have stood the test of time over a millennium, have not been suspended,' the report warned.

The report expressed concerns that huge deficit spending by Congress as well as the Federal Reserve's loose monetary policy could supercharge inflation rates.-- excerpt, rest at link above --