– 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

One reason is because other countries are also experiencing inflation even higher than in the US.

Also remember that Europe is experiencing a war.
It’s currently contained to one area, but it is causing anxiety in the area and that devalues currency in the area and the US is less impacted by that compared to the euro and the ruble.

China continues to be impacted by their zero covid policy, which is a driver for the dollar being stronger relative to rmb.

So it’s a combination of factors.