But ‘incorporating a hedging asset is no free lunch, as it may increase a portfolio’s risk profile’ Despite just a small rise in UK consumer price inflation in January, investors are still being warned that inflationary forces both in the UK and more globally, could spike later in the year. Having risen 0.6% in December, UK Consumer Price Index (CPI) inflation was up 0.7% over the year to January. While this not be the surge many had been predicting, it is evidence of further tentative signs of inflation creeping upwards. “Inflation has started 2021 in much the same vein as it finished 2020, low and moving sideways,” said Laith Khalaf, a financial analyst at AJ Bell.