US inflation print for the month of May came in at 5 percent much higher than street expectations. This week we have all important two days Federal Reserve Open Markets Committee (FOMC) meet, while an actual taper from the Fed may be far away, even talk about it by the fed officials can cause a flutter.

The Federal Reserve is likely to announce a strategy for reducing its massive bond-buying program in August or September, but won't start cutting monthly purchases until early next year, a Reuters poll of economists has found.

Booming demand with the U.S. economy reopening is expected to continue and push up consumer prices this year, with the June 4-10 Reuters poll of over 100 economists showing an upgrade to both growth and inflation forecasts.

US inflation beat expectations but the market is pretty comfortable because, it believes the following - a) the US Fed will continue to see this rise in inflation as temporary and transient, b) as a result of this US bond yields will behave themselves, and c) the US dollar will continue to head lower.

CNBC-TV18’s Prashant Nair gets more details on expectations from the US central bank's action later this week

(With inputs from Reuters)

(Edited by : Abhishek Jha)