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'Inflation is not over—it's getting worse' - Degussa economist

Kitco News

Inflation has been building for many months, said Thorsten Polleit, chief economist at Degussa.

In November Polleit spoke to Kitco at the Deutsche Goldmesse show in Frankfurt, Germany.

Last week the the U.S. Labor Department said headline inflation rose 6.2%, the largest yearly increase in headline inflation since November 1990.

The Biden administration and Fed officials have stated that inflationary pressures are transitory based on pent-up demand, supply chain bottlenecks and labor shortages.

"It's still to be seen if this is the end of spiking inflation. I'm less optimistic," said Polleit, who noted that the U.S. Federal Reserve has increased the money stock M2 by about 36% since 2020.

"This is a huge monetary overhang. I'm quite confident that gold will shield people against the inflationary policies. [Gold is] going to remain a solid inflation hedge."

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