What does US inflation at 7.9% mean for India?

There was not much of a surprise in the US inflation outcome as it came exactly at the level projected by the Reuters poll of economists. At 7.9% for the month of February 2022, consumer inflation in the US is at a 40 year high. The list time inflation above 8% was seen in the US was way back in 1982 during the peak of the Volcker era. Analysts are expecting the inflation to surge above the 8% level in the coming months on oil factor.

On a sequential basis i.e. February over January, the consumer inflation was 0.8% compared to just 0.6% in Jan-22. The inflation was already high at 7.5% in January 2022 and fuel and energy have been the major drivers of higher inflation in the month of February. Even core inflation has been driven up by apparel, housing and the downstream effect of fuel costs. This will ratify the Fed guidance on rate hikes, but may be limited to 5 hikes.