Five reasons why US inflation risks are still rising

I posted earlier from Deutsche Bank’s outlook for the Federal Reserve:

• Aggressive Fed easing more like a Christmas wish list rather than the most likely outcome

A separate piece from Deutsche Bank says not to ignore the risk of higher inflation, outlining five reasons this is rising:

• Central banks have implemented more aggressive short-term monetary easing than anticipated.
• Commodity prices are rising due to China’s stimulus measures and ongoing tensions in the Middle East.
• U.S. economic data remains solid, suggesting the economy may avoid a more severe downturn.
• The September CPI report exceeded expectations, showing stronger inflation.
• Money supply growth is picking up pace.

This article was written by Eamonn Sheridan at www.forexlive.com.