A negative decline in the worth of a currency relative to other currencies or commodities, constitutes inflation relative to those currencies/commodities. The price of a currency is determined by its relative supply and demand dynamics, with demand contingent upon the worth of commodities or other currencies that can be acquired using it.
As a result, the acquisition of less desirable local goods, regardless of the rationale, signifies an alternative manifestation of currency devaluation. Mitigating the escalation in the local currency’s supply growth relative to the expansion in the supply of dollars is the sole measure capable of remedying the devaluation in its purchasing power.
