America has more inflation than India, the record of 40 years has been broken!

The effect of US inflation is visible on the world market, the condition of the stock market is deteriorating in India too, the rupee is getting weaker

At present, the general public in the country is suffering from rising inflation. Due to the increase in the prices of petrol, diesel and gas, the prices of everyday items have been affected. At the same time, the ongoing war between Russia and Ukraine has made the matter more serious. Recently RBI hiked its repo rate which has increased the prices of monthly installments. Thus, we are totally battling inflation. But it is not that this situation is only in India. If you compare with other countries, then you will know that the condition of other countries is also similar. If we talk about America, inflation there has broken the record of the last 40 years.

Let us tell you that the data of inflation in America for the month of May has come out. According to data released by the US Department of Labor, in the month of May, the Consumer Price Index, or retail inflation, reached a 4-decade high. According to these figures, the CPI in the month of May stood at 8.6 percent on a yearly basis. Whereas in the month of April, the retail inflation rate was 8.3 percent, compared to the theme March, the inflation rate increased by 0.3 percent in May. In March 2022, consumer price-based inflation reached 8.5 per cent for the first time since 1982.

The rising prices of food and other essential commodities in the midst of rising inflation have made it very difficult for any American family to survive. The black community and the people of the low-income group are suffering the most. Some analysts have expressed the possibility that there may be some relief in inflation in the coming few months, but despite this, there is little chance of inflation falling below 7 per cent by the end of the year.

Talking about the stock market, after these figures, there has been a huge sell-off in the US stock market. The Dow Jones lost 880 points, or 2.73 per cent, the Nasdaq 414 points, or 3.52 per cent, and the S&P 500 lost 117 points, or 2.91 per cent. It has also affected the global market. The Indian market also declined by more than 1000 points due to the US condition.

Due to this inflation, the pressure on the US Federal Reserve to increase the interest rate has increased. In such a situation, if the Federal Reserve increases the interest rate, then foreign investors may have to suffer more. Also, further reduction can be seen in the Indian stock market. Apart from this, the high interest rate will further reduce the value of the rupee, which has already reached the level of Rs 78. A weaker rupee will make the import bill costlier and increase the imported inflation rate. In such a situation, the pressure on the Reserve Bank to increase the interest rate will increase to strengthen the rupee. For the current financial year, the government has set a fiscal deficit target of 6.9 per cent in the Budget 2022. For this, the average price of crude oil has been kept at $ 75. The Reserve Bank has increased the average price for crude oil to $105 per barrel in the MPC meeting held this week.

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