Understanding how changes in exchange rates affect prices is crucial for managing inflation. A study of 47 countries found that the impact of exchange rate movements on inflation varies based on the type of shock and country-specific factors. Different shocks can lead to different levels of price adjustments. Countries with flexible exchange rates and credible inflation targets tend to have lower pass-through ratios. Central bank independence helps stabilize inflation after currency fluctuations, making it easier to use the exchange rate as a buffer against external shocks.