How worrying is the renewed rise in EM core inflation?

EM core inflation jumped to its highest rate in almost two decades in January. That can partly be pinned on China, where core inflation has risen from a very low rate. In most other EMs, core inflation has passed its peak, which should allow policymakers to start unwinding aggressive monetary tightening cycles later this year. But even so, core inflation pressures remain alarmingly strong in Central Europe and parts of Latin America; we think that central banks there will deliver less easing than most expect this year.