Imported Inflation

Imported Inflation

A rise in price due to currency appreciation. For example, suppose the United States buys oil from Canada and then the Canadian dollar appreciates relative to the U.S. dollar. This will make Canadian oil more expensive to buy in the United States, which gives the appearance of inflation even though the U.S. dollar has not actually lost any value.
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While the influence of tax reforms is expected to fade in coming months, price pressures could still become more entrenched on rising imported inflation, which will add to calls for the BSP to raise interest rates.
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.
It called upon the government to take urgent measures to bring stability in the value of domestic currency as the continuous fall in the value of rupee would bring imported inflation in the country and curtail domestic demand leading to further slowdown in the economic growth of the country.
It called upon the government to take urgent measures to bring stability in the value of the domestic currency as the continuous fall in the value of rupee would bring imported inflation in the country and curtail domestic demand leading to a further slowdown in the economic growth of the country.
One of the key concerns of the depreciation of Sri Lankan Rupee is imported inflation as many essential goods including fuel, cereal and large number of food items are imported into the country.
It reckons hints by Bank Governor Mark Carney about an increase in the coming months was "aimed at propping up sterling to reduce imported inflation pressures".
import prices fell by the most in seven months in March as petroleum costs declined, the government reported Wednesday, indicating that the underlying trend pointed to a moderate rise in imported inflation as the U.
In particular, imported inflation will continue to slow down due to the low volatility of the hryvnia exchange rate and a further decrease in inflation expectations.
However, it is inevitable that imported inflation will begin to make its mark and we would expect to start to see this effect coming through in the first quarter of 2017.
BRC director general Helen Dickinson said: "It is inevitable that imported inflation will begin to make its mark.
While upside risks to the inflation outlook are mitigated by contained imported inflation in light of broad-based declines in international commodity prices, underlying domestic inflationary pressures could push up inflation expectations," the MPC said.