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Rising prices for energy, labour shortages, and supply chain disruptions exacerbated by sanctions on Russia have triggered an inflationary wave that may be difficult to stop, says the Deutsche Bank.

A shop assistant demonstrates Russian rouble banknotes at a grocery in Stavropol, southern Russia, January 21, 2016.A shop assistant demonstrates Russian rouble banknotes at a grocery in Stavropol, southern Russia, January 21, 2016.

Rising prices for energy, labour shortages and supply chain disruptions exacerbated by sanctions on Russia have triggered an inflationary wave that may be difficult to stop, Deutsche Bank Wealth Management’s chief investment officer said. “Consumer price inflation in the U. breached the 7% threshold and the Eurozone has seen levels of 5%,” Global CIO Christian Nolting said in a research note.“Sanctions, as well as businesses halting their operations in Russia, are exacerbating supply chain problems,” he said.

“Furthermore, shortages in platinum, palladium or even neon are hampering the manufacturing of intermediate products.”

 

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