The publication, on 2 February, of a non-farm payrolls report showing the biggest jump in wage gains since the end of the Great Financial Crisis, signalling a pick-up in US inflation, prompted a 10% correction in the S&P 500 equity index. After a rally throughout 2017 amid low volatility, this was – some would say – a healthy injection of volatility into financial markets.

Another US inflation surprise, this time in the January CPI print released on Valentine ’s Day, led to a 1.3% rise in the S&P 500. The headline CPI rose by 0.5% month-on-month (MoM), while core CPI was up by 0.35% MoM compared to consensus expectations of just 0.2% MoM.

Read our expert’s full analysis of what’s happening with inflation in the US and why investors in US equities and bonds should take that into account when making their decision.