Hey,
I found a pretty good answer to this question here
Aside from that I think Inflation is going to be very low for the immediate future, as although there is a built in 1 percent annual inflation in the coin, the supplemental inflation from mining is rapidly disappearing as the higher difficulty soars the lower the block reward goes(built in halving of block reward for every 16x increase in difficulty) this is much lower than the inflation rate currently being seen by coins such as Primecoin, Litecoin, or Bitcoin where the minting process is giving a far higher inflation rate.
Secondly I think Peercoin's Proof of Stake is going to be far safer than proof of work, as while proof of work relies on no single person buying enough equipment to take control of the block chain, Proof of stake just takes that out of consideration, As said person would need to own an enormous chunk of all peercoins to be able to affect transactions so, which becomes increasingly relevent once you realize;
There is no longer any way to get that many peercoins through mining, as even if you point a couple thousand ASIC's at peercoin they will get you quite a few blocks, but they will also greatly reduce the number of coins minted through mining.
If you try to buy that many coins, it is doable, but it would cause the price of the coin to rise, and by the time you have enough coins to pull off an attack you would have so much money invested that the fall in prices caused by the attack would make it completely unprofitable.
Proof of work has its own reasons for not having 51 or 25 % attacks, but they all rely on faith in that miners won't act selfishly, while Peercoin's proof of work only relys on that anyone who spends enough to buy half to a quarter of peercoins wouldn't go around shooting themselves in the foot, if they ever managed to buy enough coins given that any such large transactions would cause the price to shoot through the roof.
