1. Indeed, if monetary relaxation succeeds in stabilising output, it should unlock sharp productivity gains which could finance higher import costs. 2. The main danger now is that the gain in competitiveness will be eroded by inflation partly triggered by the rise in import costs. 3. An increase in the cost of borrowing would give a boost to the deutsche mark, which in turn would reduce inflation by cutting import costs. 4. At the same time, he said, devaluations of Asian currencies will help to keep U.S. inflation in check by holding down import costs. 5. A strong dollar also reduces the risk that rising import costs will accelerate inflation, which causes fixed-income securities to lose value. 6. A stronger krona can reduce the rate of inflation and producer prices by lowering import costs and export income. 7. A weaker peso would boost the cost of foreign debt and raise import costs, possibly spurring inflation, analysts said. 8. Higher import costs and the expected domestic slowdown forced materials makers to plan price increases in April. 9. It includes earnings sent home by Philippine workers overseas, counted as export income, and personal income sent abroad, counted as import costs. |
|