Download Learnerz IAS app from the Play Store now! Download



Imported inflation UPSC NOTE

 Imported inflation

  • Imported inflation refers to the rise in the prices of goods and services in a country that is caused by an increase in the price or the cost of imports into the country. 

  • It is believed that a rise in input costs pushes producers to raise the price they charge from their local customers, thus boosting inflation

  • A depreciation in the value of a country’s currency is generally seen as the most important reason behind imported inflation in an economy. 

  • This is because when a country’s currency depreciates, people in the country will have to shell out more of their local currency to purchase the necessary foreign currency required to buy any foreign goods or services, which in turn means that they will effectively be paying more for anything that they import.

Why The Asian Development Bank recently warned India could face imported inflation

  • The Asian Development Bank recently warned that India could face imported inflation as the rupee could depreciate amid the rise in interest rates in the West. 

  • A rise in interest rates in the West tends to cause the currencies of developing countries to depreciate against western currencies, which in turns can lead to higher import costs for these countries.

  • A rise in import costs even without depreciation in the value of a country’s currency is also believed to lead to import inflation. 

  • So a rise in international crude oil prices due to fall in oil output, for instance, is expected to cause prices to rise across an economy which imports oil to produce goods and services. 

  • The idea of imported inflation, it should be noted, is simply a variant of cost-push inflation which states that a rise in the cost of inputs can lead to an inflation in the prices of final goods and services.



Amritsar,1,April 2024,301,Art & Culture,1,August 2023,251,Courses,7,Daily Current Affairs,48,December 2023,189,Disaster Management,2,Environment and Ecology,54,February 2024,228,Foundation Course,1,GDP,1,GEMS Club,1,GEMS Plus,1,Geography,67,Govt Schemes,2,GST,1,History,2,Home,3,IAS Booklist,1,Important News,71,Indian Economy,46,Indian History,2,Indian Polity,56,International Organisation,12,International Relations,58,Invasive Plant,1,January 2024,240,July 2023,281,June 2022,6,June 2023,268,March 2024,238,May 2022,17,May 2024,204,Mentorship,2,November 2023,169,October 2023,203,Places in News,2,Science & Technology,66,September 2023,205,UPSC CSE,111,
Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Imported inflation UPSC NOTE
Imported inflation UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content