1. Inflation is increasingly being driven by global factors like rising food and fuel prices rather than domestic monetary policies. As trade and capital flows have integrated globally, inflation has become more volatile and persistent across countries. 2. 'Asset inflation' caused by speculative investment treating commodities like food and oil as assets contributes to high and volatile price levels beyond temporary spikes. High growth in global financial assets is channeling capital into financial markets rather than productive investment. 3. Countries like Brazil are vulnerable to speculative capital flows that can rapidly appreciate and depreciate their currencies, with inflationary impacts. Coordinated macroeconomic, exchange rate, and capital control policies are needed to manage such financial instability.