Your edit is very close. "Imported inflation" listed as "2." under "Causes of Cost Push Inflation". http://www.economicshelp.org/blog/2006/economics/cost-push

Your edit is very close. "Imported inflation" listed as "2." under "Causes of Cost Push Inflation". http://www.economicshelp.org/blog/2006/economics/cost-push-inflation-2/ http://www.economicshelp.org/blog/2006/economics/cost-push-i... However, it misses the other side-effect of imported inflation, namely the effect of substitution. If good or service A is imported but priced in a relatively appreciating currency, and service B is non-imported and priced in the local currency, the price of B drops, driving demand upwards. If B is also exported, the export markets seeing a relative drop in the value of the currency B is priced in will also buy more of B, further driving demand upwards. Consequently, imports become more expensive even without a drop in demand. Exportable items (or even just substitutes for imports) become more expensive in response to increased demand. A bit more here: http://www.economicshelp.org/blog/1491/economics/imports-and-inflation/ http://www.economicshelp.org/blog/1491/economics/imports-and...