Original title: US CPI hits a 13-year high CEO: If inflation does not cool down, gold is expected to soar to $2,000
FX168 Financial News (North America) News Tuesday (July 13), the US Consumer Price Index (CPI) rose 0.9% in June, the largest increase since June 2008. Compared with the same period last year, the overall inflation rate has now reached 5.4%.
GraniteShares CEO Will Rhind said that if inflation does not cool down later this year, gold as an inflation hedge may continue to rise.
At the same time, the core CPI, which excludes food and energy costs, rose 0.9% in June, up from 0.7% in May. Economists expect an increase of 0.4%.
The core inflation rate continues to show unprecedented growth. The report said that the annual inflation rate rose by 4.5%, the largest 12-month increase since November 1991.
“I think if we start to see high inflation data after the summer, when everyone comes back from the holiday in September, I think we can easily see it before the end of the year,” Rhind told Kitco News anchor David Lin.
Regarding the composition of inflation hedges, Rhind believes that during periods of high inflation, one asset must perform better than others. He said that according to this definition, stocks do not meet the conditions for hedging inflation.
“At present, the stock market is rebounding because the market believes that there is no inflation problem. In an inflationary environment, the stock market will have such a situation: companies cannot pass on these inflation costs.”
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