Rising emerging market stocks have boosted the MSCI EM index to its highest level in two and a half years, on speculation China's inflation eased last month.
Inflation edged closer towards 4% in December as the rising cost of food and oil products continued to hit the price of goods and services.
Consumer price inflation reached a six-month high of 3.3% in November, figures released today by the Office for National Statistics show.
Jason Britton, chief investment officer at T. Bailey, looks at the reasons behind inflation-related volatility
CPI inflation remained at 3.1% in September but the figure is still well above government targets.
The UK Consumer Prices Index (CPI) was unchanged in August at 3.1%, according to the Office for National Statistics (ONS).
Veritas global income fund sees inflows intensifying as investors seek yield overseas
HSBC has launched its Global Inflation Linked Bond fund with overweights to the US and Japan, but an underweight to the UK.