Financial Market: Real Effective Exchange Rates: CPI Based for Ireland

Annual

CCRETT01IEA661N • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

101.98

Year-over-Year Change

-6.38%

Date Range

1/1/1970 - 1/1/2024

Summary

The Annual trend measures the annual rate of change in the consumer-to-consumer real exchange rate, which is an important indicator of a country's international competitiveness.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The consumer-to-consumer real exchange rate tracks the purchasing power parity between currencies, providing insight into a country's trade balance, inflation, and economic performance relative to its trading partners.

Methodology

The data is calculated by the Federal Reserve using exchange rate and price index information.

Historical Context

Policymakers and analysts monitor this trend to assess a country's export potential and susceptibility to external economic shocks.

Key Facts

  • The annual rate of change in 2022 was 3.2%.
  • A higher rate indicates a country's exports are becoming more affordable for foreign buyers.
  • The real exchange rate factors in relative price levels between countries.

FAQs

Q: What does this economic trend measure?

A: The Annual trend measures the year-over-year change in the consumer-to-consumer real exchange rate, which reflects a country's international price competitiveness.

Q: Why is this trend relevant for users or analysts?

A: The real exchange rate is a key indicator of a country's trade balance, export potential, and vulnerability to external economic shocks.

Q: How is this data collected or calculated?

A: The Federal Reserve calculates the consumer-to-consumer real exchange rate using exchange rate and price index data.

Q: How is this trend used in economic policy?

A: Policymakers and analysts monitor this trend to assess a country's international competitiveness and make informed decisions about trade, monetary, and fiscal policies.

Q: Are there update delays or limitations?

A: The annual data is published with a lag, and the underlying exchange rate and price index information may have their own reporting delays.

Related Trends

Citation

U.S. Federal Reserve, Annual (CCRETT01IEA661N), retrieved from FRED.