There are concerns that these flows are not sustainable—that when monetary policies in the advanced economies return to normal, the flows could reverse in a disruptive way, particularly for those EMEs with weaker domestic fundamentals.
The graph shows quite clearly that food and fuel prices, reflecting supply-side forces and the prices of manufactured goods, reflecting demand-side ones, all contributed significantly to the recent rise in inflation. If we look back a little at the inflationary surge immediately preceding the crisis, we can see that the pattern is quite similar.