Consider the following statements regarding imported inflation:

1. Imported inflation occurs when domestic prices increase due to the rise in prices of imported commodities and raw materials.

2. It is primarily caused by a country's strong export performance leading to an appreciation of its currency.

Which of the statements given above is/are true?

1
Only 1
2
Only 2 
3
Both 1 and 2
4
Neither 1 nor 2

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