Hi Vivek,
Very good explanation by Donald and by Sachin. On the FPEPA, I will add one more clarification. Inflation depends on many economic factors such as index price, exchange rate, interest rate in a country, devaluation of currencies, commodity index etc. Not sure about your background but generally in Sourcing, when we sign contract with overseas suppliers, typically there are clauses covering most of these affecting factors. I will give an example here. Metal prices across the global market plummeted in late 2018 and reached to the bottom until Q1 of 2019. Due to the ongoing LTAs ( Long Term Contracts ), we were either able to recovered $$M from large metal product suppliers following the metal market index or locked down prices for future recovery.
Hope this clarifies.