– How can inflation be hitting this hard in the US, when the dollar is getting stronger around the world when compared to other currencies like the Euro?

Question

– How can inflation be hitting this hard in the US, when the dollar is getting stronger around the world when compared to other currencies like the Euro?

In: 16

Answer 1

Exchange rates are not strongly correlated to inflation at all. Exchange rates are affected by people wanting to convert one currency to another, and protecting against domestic inflation is just one of many reasons someone might want to convert currencies.