Measures to control imported inflation
- Import substitution strategy:- The government promotes the establishment of industries that produce goods which were initially imported into the country.
- Import restrictions:- Government imposes restrictions on the importation of goods into the country especially from countries experiencing inflation so as to minimize chances of importing high priced goods.
- Subsidization policy:- Government can provide subsidies to the imports so as to stabilise and lower the prices of imported goods.
- Selective import sourcing:- The government can only allow importation from countries that are not experiencing inflation so as, to avoid importation of inflation.
- Import trade agreement:- The importing government can sign agreements with the exporting countries to ensure that the imports are sent at a constant price.
- Price negotiations:-The government can send delegations to other countries to negotiate for the lower paces of imports.