I'm curious about the dynamics of imported prices compared to domestic prices of the same goods. I saw something online that said
"Measure inflation: A primary reason for measuring import prices is to track the impact they have on domestic inflation. Movement in import prices can often be an indicator of future inflation since some inputs to domestic production, as well as consumption, are imported."
Is the opposite true? Can a movement in domestic prices be an indicator that import prices have risen. I'm interpreting inflation as meaning that domestic prices are increasing.
If I have some data about local prices, what can I say about imported prices that I don't have access to (say of like wheat or some other cereal)? if I would need more information, what information would that be?