Inflation is the ‘rhinoceros in the room’ for the world, says Deutsche Bank

© Reuters. FILE PHOTO: Deutsche Bank’s logo is seen on the roof of the bank’s headquarters in Moscow, Sept. 14, 2015. REUTERS/Sergei Karpukhin

LONDON (Reuters) – Rising energy prices, labor shortages and supply chain disruptions, exacerbated by sanctions against Russia, have sparked an inflationary surge that may be difficult to stop, German Bank (DE:) Wealth Management’s chief investment officer said.

“U.S. consumer price inflation crossed the 7% threshold and the eurozone has reached 5% levels,” said Global CIO Christian Nolting in a research note. “The rhinoceros in the room has been released and may now be difficult to stop.”

“Sanctions and companies ceasing operations in Russia are exacerbating supply chain problems,” he said. “In addition, shortages of platinum, palladium or even neon hinder the manufacture of intermediates.”

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