Is Inflation and depreciation/appreciation of the currency value in a country related?
Inflation occurs when the prices of goods and services increase without any corresponding appreciation of the value of a currency.Thus, the cost of living increases. Likewise, if the value of the currency depreciates, imports of goods and services become more expensive, making consumer goods and services more expensive. This also causes inflation. In such situations, inflation and depreciation/appreciation of the currency value in a country are related. Hope this explanation helps you.
