For example, the Mexican peso depreciated by an average of 31 percent per year against the dollar between 1977 and 1995, while the Mexican inflation rate averaged about 30 percent per year higher than the U.S. inflation rate.
Recent macro evidence: pass-through to consumer prices The correlation between consumer price inflation and the rate of nominal exchange rate depreciation can indeed be high in an unstable monetary environment in which nominal shocks fuel both high inflation and exchange rate depreciation.