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Inflation in the US is showing signs of entering a worse peak. To deal with this, the US central bank ‘Federal Reserve’ is expected to take drastic steps. In such a situation, the financial markets are scared and the fear of recession has increased.
The US government said inflation rose 0.1 percent between July and August and 8.3 percent on an annual basis. However, it is lower than the four-decade high of 9.1 per cent in June. Excluding volatile categories such as food and energy, basic prices in the US have also risen faster than expected, rising 0.6 per cent between July and August. In the event of prolonged stagnation in inflation, supply chain disturbances, measures to contain the rise in oil prices are proving to be a failure. This is the reason why inflation is causing a lot of trouble.
Product expensive due to salary increase
Some other reasons are also making the situation worrying in America. Prices are no longer rising in the US market because inflation has already skyrocketed. On the other hand, due to increasing the salary of employees due to pressure, companies are also having to increase the prices of their products. This has also had an effect on inflation.