If the weakness of the markets first appeared in Europe after the European Central Bank announced that it would raise interest rates for the first time in ten years, now Wall Street is pulling down European markets.
During the month in the US fuel prices rose even more, housing and airline tickets, which hit stock indexes and European stock markets, according to the Voice of America.
The US Department of Commerce said on Friday that rising consumer prices in the country during May accelerated again. The consumer price index (CPI) increased by 1.0% in May compared to 0.3% in April. This means that the increase over the past 12 months was 8.6%, which in the US has not been observed for over 40 years.
The average price of gasoline rose to an average of $ 4.37 per gallon (in the US – 3, 8 l). Various services have also risen in price – rent, hotel rooms, air tickets – which has led economists to believe that the Federal Reserve (Fed) will continue to raise the base discount rate over the summer to curb inflation. It is expected that the discount rate can be raised again at the next meeting of the Fed in the coming Wednesday.
Read also: Wall Street: falling indices against the background of the fight against inflation
To some extent, say analysts, rising prices are due to the fact that unemployment in the US is still at a record low, and many companies have increased wages to their employees due to lack of manpower.
According to reports of rising inflation in The United States has announced to the European Central Bank that it is also preparing to raise discount rates next month, for the first time since 2011. All this had a negative impact on European stock indices, which lost from 2.0% to 5.2% on Friday.
