The United States reported Friday a forecast-busting 7.5% jump in consumer prices for the month of January, a rate not seen in nearly 40 years. The surge underscores how inflation threatens the world’s largest economy.
The jump in US inflation wave poses a political liability for President Joe Biden as his administration made fighting inflation a top priority last month after the CPI in October saw its sharpest annual increase since 1990.
Commenting on US’ economic development, Asia’s richest banker and CEO of Kotak Mahindra Bank, Uday Kotak, today tweeted, “7.5% inflation and 0% interest rates! You would think it is an emerging market with poor institutional governance. It is the United States of America ( USA)”.
“In 2013 India paid the price for its ‘taper tantrum’. When US sneezes,world catches a cold. Not this time please, Mr. USA,” Kotak added.
The rupee declined 31 paise to 75.46 against the US dollar in opening trade on Friday, tracking overall Dollar strength after a larger-than-expected US inflation unleashed a wave of bets on aggressive rate…
