We analyze the channels through which the exchange rate af-fects nal consumer prices. We compare advanced countries withone emerging economy, Brazil, to determine the corresponding ex-change rate pass-through and its channels. A key aspect to theexchange rate pass-through is the relative importance of tradablesin the consumption basket as well as the share of imported inputs.Since non-tradables are usually cheaper in developing economies,the share of non-tradeables is smaller in theses countries. We il-lustrate this scenario using data from Brazil vis-a-vis a group ofadvanced economies.