Over the last 12 months, the USA All Items inflation increased by 8.6% in May-2022 when compared with May-2021 and it is above street expectation.
Actually it is a negative news for USA stock markets.
USA food inflation increased by 10.1% in May-2022 on 12 months basis.
USA Energy inflation increased by 34.6% in May-2022 on 12 months basis.
USA All Items excluding food and energy increased by 6% in May-2022 on 12 months basis.
Asian markets closed in red ahead of USA inflation data release. USA markets also trading in deep red post announcement of USA inflation data.
FED may be aggressive in increasing interest rates going forward to control inflation.
If USA increases interest rates, globally most of the countries will increase interest rates.
High inflation pressure will be there on USA stock markets and global stock markets.