– 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?
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US might have an inflation rate, the annular rate was 8.6% in May 2022 but it is high in the Euro area too where it was 8.1% in May. If you compare things you cant just look at the number for one side, you need to consider both. It is also not as simple as exchange rate changes are just a result of inflation.
There is one huge difference between the US and Euro area, the dependence on Russian fossil fuels. Lots of European countries like Germany are very dependent on Russian gas. One major usage of it is heating in the winter. With the war in Ukraine and political move to not purchase from Russia in combination with threats from Russia to cut the supply.
The value of the Euro is in large part connected with the state of the European economy and will include the future expectation. So likely problem with gas supply this winter has an effect on it today.
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