The degree of pass-through, in turn, has a strong influence on the transmission of shocks, which has differing implications for monetary policy. On the one hand, lower pass-through means that import prices are better shielded from exogenous exchange rate shocks, and monetary policy can focus more on domestic sources of inflationary pressures.
[34] Price increases in local currency by exporters will, of course, still be transmitted to domestic consumer prices. As of today, more than 90% of US imports are invoiced in US dollars. By comparison, less than 50% of extra-euro area imports are invoiced in euro.