Devaluation of currency will be more beneficial if prices of

Devaluation is a deliberate reduction in the value of a country's currency relative to others, aimed at making exports cheaper and imports more expensive [6]. For devaluation to be truly beneficial, the price of domestic goods must remain constant [4]. If domestic prices rise (inflation) following devaluation, the competitive advantage gained from a weaker currency is eroded because the cost of production and the final price of exportable goods increase [5]. While devaluation naturally makes exports cheaper to foreign importers [2], this benefit is maximized only if internal price stability is maintained. If domestic inflation offsets the exchange rate adjustment, the real exchange rate does not improve, and the trade balance may not recover [1]. Therefore, keeping domestic prices constant ensures that the nominal devaluation translates into a real competitive gain in international markets.

Sources

1. [4] https://www.investopedia.com/articles/investing/100813/interesting-facts-about-imports-and-exports.asp
2. [6] https://www.sciencedirect.com/topics/social-sciences/currency-devaluation
3. [5] https://www.jstor.org/stable/1880600
4. [2] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 6: Open Economy Macroeconomics > Supply of Foreign Exchange > p. 91
5. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > Before 1993: > p. 40