USA inflation at high. How does the Indian market get impacted?

Inflation in the US is at a multi-decade high. It accelerated to 8.6% in May 2022, which is the highest since December 1981. Such a high inflation rate has an impact not only on the US but also on the world’s economy, including India’s. The article sheds light on how the extremely high US inflation impacts the Indian market and economy.

Inflation in the US is at a multi-decade high. In fact, the annual rate of inflation in the US accelerated to 8.6% in May 2022, which is the highest since December 1981. Such high inflation impacts not only the US but also the entire world's economy, including India. After all, the US is the biggest source from where money flows across the globe. What is the inflation rate? The inflation rate is the rate at which prices increase over a given period. If a product was available for Rs 100 in January 2021 but costs Rs 105 a year later, that is a price increase of 5%. This 5% increase is referred to as inflation. A high inflation rate erodes the purchasing power of money, so a buyer gets less value even if they are spending the same amount. Why is inflation in the US a matter of conce...

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