High inflation has increased expectations that the US central bank, the Fed, will raise interest rates.
In the United States, fresh inflation figures have been announced today. Inflation in June was 9.1 percent, the highest figure since 1981.
Inflation has been raised by, among other things, the war in Ukraine and the rise in energy prices caused by it.
President of the United States Joe Biden described the recent figures as “so high that they cannot be accepted”. At the same time, however, Biden claimed that the figures are already outdated.
High inflation has increased expectations that the US central bank, the Fed, will raise interest rates.
This would make borrowing money more expensive and thus reduce consumer demand in the market.
Shortly after the publication of the inflation figures, the dollar rate surpassed the euro rate for the first time in almost 20 years.