Though India is in a better position, high inflation in the rest of the world will have a cascading effect on the domestic economy and the stock market.It is logical to invest in areas that are less elastic to high inflation like service providers as well as staples. Industries that have a high growth cycle, steady source of raw materials (no supply issue), and low leverage.
US inflation tops 4% for first time in three years, keeping Fed hike in play
US inflation climbed to 4.1% in May, driven by rising energy prices, keeping the Federal Reserve’s interest rate hike plans on the table for September.