I'd like to add "and the speed of transactions". Higher velocity of money means "more money" is available. Say everyone increases their spending, then shops will increase their income, and salaries will increase, and the higher spending can be supported and become sustainable, costs of things will increase with the new money available in the system.

The velocity of the currency is mostly dependent on the ratio of the amount of it in circulation with regards to the amount of goods and services it applies to. There are other modifying factors, but we aren't trying to textually modelize the entire monetary system here I think? Anyway, it's not a direct influence on inflation. It's more the other way around: very high inflation rates increase the velocity of money.

Multiply 1.2 (120%) by itself 25 times. The total is 95.3...

Right, that seems obvious now.

If they want to pay back current debt through inflation, then how are they going to increase inflation? They are currently trying to lower inflation by increasing the interest rate.

Yes, that is why I am stating that they expect de-dollarization of international trade to exert a heavy pressure downward on the purchasing power of the currency. Creating inflation is easy: print more money, lower interest rates (which is the same thing). Now they are raising rates, they could soften that downward pressure on inflation by printing more, but they are not. Therefore, they are expecting other major pressures on the currency. De-dollarization.