Inflation

Developing economies will drive the global upturn, despite fears of a hard landing in China and other emerging markets last year, says Michael Hasenstab at Franklin Templeton.

INFLATION HEDGES

GOSLING'S GROUSE

Fundsmith founder Terry Smith says China is the story for 2011 and warns the economy could be poised to 'fall over'.

Schroders' Richard Buxton believes interest rates will remain on hold in 2011, despite a record jump in inflation.

INFLATION WILL CAUSE MASS HYSTERIA

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.

Economics research firm IHS Global Insight has revealed its predictions for the UK economy in 2011, forecasting GDP growth of 1.8% and average CPI inflation of 3.2% over the course of the year.

The UK should not set upon a further bout of quantitative easing to curb its economic problems, says F&C's Peter Lees, as inflation is already too high.

BONDS