The whole world is currently battling with inflation. Inflation in the US has reached a 40-year high of 8.3 percent. In Britain it has reached a 30-year high of 7 per cent and in France it has reached the highest level since 1990 at 5.2 per cent. Retail inflation in India too rose to 7.79 per cent in April, the highest in eight years since May 2014.
It will have to wait for three to four quarters to recover
from the pressure that is being seen on all fronts in the entire world economy
at this time. The currencies of the world's top countries including the US,
China, India and Japan, the stock market, all instruments of investment
including bitcoin have fallen drastically. This has caused huge losses to the
investors. In some countries, inflation has even reached 40-year highs. High
oil prices are adding to the fire. To overcome this, 21 central banks around
the world have raised interest rates. This will affect the savings of the
people.
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Huge fall
in currencies
The rupee has lost 1.67 per cent against the dollar in a
month. During this period, the Chinese yuan fell 6.5%, the Japanese yen 17.38%,
the euro 4.35% and the British pound 6.49%. The International Monetary Fund
says that the rupee may fall further to the level of 94.4 against the dollar.
The
condition of the stock markets
India's Nifty has fallen 9.8% in one month. China declined
4.14%, Japan 4.08%, European markets 7.17%, American Dowsons declined by 6.97%.
The Indian market capital has declined by Rs 34 lakh crore since April 11.
Whole world
battling with inflation
The whole world is currently battling with inflation.
Inflation in the US has reached a 40-year high of 8.3 percent. In Britain it
has reached a 30-year high of 7 per cent and in France it has reached the
highest level since 1990 at 5.2 per cent. Retail inflation in India too rose to
7.79 per cent in April, the highest in eight years since May 2014.
India's
better position in GDP
By the way, India's position is good in terms of growth
rate. It rose 5.4% in December. China's economy grew 4.4 percent in the March
quarter. US GDP declined by 1.4%, UK by 0.1% and Japan's by 0.8%.
Cryptocurrency
also hit
The market cap of cryptocurrencies declined from $3.1
trillion to $1.19 trillion. Bitcoin is down 17 percent in a week. This is the
lowest level in 16 months. Polkadat fell 28 per cent and Solana 38%.
Will have
to wait a little longer for investment
Tridip Bhattacharya, Chief Investment Officer, Edelweiss Mutual Fund says that unless there is clarity on inflation, interest rates and capital investment, the market will remain volatile. Avoid lump sum investment.
ICICI Bank Chief Economist Sameer Narang said, "Till
the time there is no stability in the US market, our market will also see its
impact." The effect of inflation will remain for some time. Read More: