Well, the truth is simply that inflation is indicated as a percent change, so even when this percent is declining, all it means is that the prices are rising at a slower rate, but they are still rising! The prices would come down only when the inflation becomes negative. 19.
Currently, the low interest rates in the international market and concerns over the sustainability of the US twin deficits have been driving factors in pushing capital to flow to emerging markets. At the same time, the high yields on domestic currency-denominated instruments in emerging markets have been the pull factor.