One in five investors in the US and UK are worried that inflation could surge out of control in the wake of record government deficits and extraordinary easing in monetary policy, a survey published on Friday suggests.

Investors expect price rises to be low this year. Across the US, the UK and eurozone, the median expectation is for 1-1.5 per cent core inflation by the end of 2010. But in the longer term the risk of a sharp rise is considered much larger, according to a survey by JPMorgan of 1,800 money managers across a range of sectors and asset classes.