✳️ In import-dependent economies, the exchange rate is one of the strongest drivers of inflation. When the currency weakens (e.g., the Naira (#NGN), Cedi (#GHS), Peso (#ARS), Lira (#TRY) depreciates), imports become more expensive (especially essentials like fuel ⛽, food 🍞, andses production costs 🏭 and leads to higher prices across the economy 📈. This phenomenon is known as EXCHANGE RATE PASS-THROUGH, where external price pressures feed directly into domestic inflation. Even if local production remains stable, prices can still rise, making inflation partly “imported”. In such situations, price control alone is ineffective, because the underlying issue is currency weakness rather than domestic pricing behavior. #Inflation #ExchangeRates #CostOfLiving #EconomicPolicy #CurrencyDepreciation #PriceStability