Australia is vulnerable to US inflation, but can also help shield poorer nations

Adam Triggs
Updated June 14 2022 - 2:21am, first published June 2 2022 - 5:30am
In developed countries, like Australia, high inflation in America makes fighting inflation at home more difficult. But we can help our neighbours. Picture: Shutterstock
In developed countries, like Australia, high inflation in America makes fighting inflation at home more difficult. But we can help our neighbours. Picture: Shutterstock

Bought something from the United States recently? You might have been surprised by the price tag. The US dollar has appreciated by more than 15 per cent against the currencies of major US trading partners since the start of the pandemic. It's even worse if you live in a developing country. For Brazil, the dollar is up 37 per cent. For Sri Lanka, it's up 43 per cent. For Turkey, it's up a whopping 208 per cent.

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Adam Triggs

Adam Triggs

Columnist

Adam Triggs is a partner at the economics advisory firm, Mandala, a visiting fellow at the ANU Crawford School and a non-resident fellow at the Brookings Institution.