INFLATION
US inflation continued to go up in June, the consumer price index jumped 9.1% than a year ago. Prices are rising at the fastest pace in 41 years. Gas prices led the way up nearly 60% from the same time last year, energy prices increased by 41.6%, whereas, food prices continue to be sky high with meals at home costing families 12% more than last year.
The increase was largely driven by gas and energy prices which soured last month accompanied with a spike in rents not seen since the mid 80’s. Stock closed a bit lower on the news. All of this is leading to fear in the economy with Bank of America today forecasting a mild recession starting in the second half of the year.
US Inflation Impact on INDIA
Increase in cost of US products also means increase in cost of goods imported in India from the US. Imports like pulses, fuel, edible oils, etc. are affected by increase in global inflation. India being a net importer, has to pay huge bills for the import of crude oil.
Read now: US Inflation Highest in 4 Decades
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