In May 2021, the US Consumer Price Index rose 5% year-on-year (after 4.2% in April 2021).
“Projected over the year,” says Dr. Thorsten Polleit, Chief Economist of Degussa Goldhandel GmbH in Frankfurt am Main, “the monthly increase was 10.1%.”
The price drivers were petrol (+ 2.1% compared to the previous month) and used cars (+ 7.3% compared to the previous month). “Core inflation” (ie consumer goods excluding food and energy) rose by 3.8% year-on-year. The sustained high growth in the money supply in the USA speaks for a high rate of monetary devaluation in the coming months, forsees Thorsten Polleit.
“Inflation will also become increasingly apparent in other currency areas – especially in the euro area. The central banks, which are responsible for the inflation of prices with their flood of money, are continuing their inflationary work”, predicts Thorsten Polleit.