It may be argued that headline inflation will further increase in the coming months and even the impact of imported inflation
will be felt in future due to around 52% depreciation of the rupee in the last 20 months.
In our view, risks relate to whether the UK moves toward "harder" or "softer" Brexit, with potentially higher imported inflation
and costlier EU trade negatively affecting the UK economy and the pub sector.
The threat from imported inflation
is low, as crude oil prices are forecast to remain soft despite planned production cutbacks by the Organization of Petroleum Exporting Countries.
The NBG maintained a moderately tight monetary policy stance due to increased risks from imported inflation
in 1H18, cutting the key rate by 0.25bps to 7.0% in July.
With international crude oil prices on the rise, Taiwan could face growing imported inflation
down the road, and the central bank may have no choice but to adjust its monetary policy, the analysts believed.
The fall of the peso's value raised concerns among various sectors in the country, the latest being manufacturers complaining about rising costs due to higher imported inflation
But as global oil prices have already crossed $80 per barrel mark and are seen heading northwards, Pakistan fears a pick up not only in imported inflation
but also in domestic cost-push inflation.
'We think inflationary pressures will go down this year as the exchange rate has improved which mean there will be a less pressure on imported inflation
Our economy may run the risk of imported inflation
especially in agriculture goods that we import.
Finally, there is the depreciation of the dinar that generates imported inflation
," he said.
The report also shows that the domestic inflationary pressure outweighed imported inflation
in the last 12 months.