...globalization may also have affected the operation of monetary policy by changing the relative importance of the various factors that determine the domestic inflation rate.3 As national markets become increasingly integrated and open, sellers of goods, services, and labor may face more competition and have less market power than in the past. In particular, prices and wages may depend on economic conditions abroad as well as on conditions in the local market.

Tortilla Prices Spark Inflation, Driving Down Mexico's Peso

...Tortilla prices jumped 5.9 percent in January, the most in eight years, after costs climbed for corn, the main ingredient. That increase fanned inflation...

"There's a big risk that tortilla price increases will lead to higher wage demands and fuel inflation," said Eduardo Perez, head bond trader at Mexico City-based brokerage Valores Mexicanos SA, the country's largest independent brokerage. "Foreign investors don't like this environment and are selling...."