Implications of Inflation on Exchange Rates

In the context of international finance, the concept of parity conditions plays a crucial role in determining the exchange rates between currencies. One of the most commonly referenced parity conditions is the Purchasing Power Parity (PPP) theory, which states that exchange rates between two currencies will adjust to reflect changes in price levels over time.

Consider the following scenario: The current exchange rate between the U.S. dollar (USD) and the euro (EUR) is 1 USD = 0.85 EUR. If inflation rates in the U.S. are expected to be higher than those in the Eurozone, what can we infer about the future exchange rate based on the PPP theory?