China is the lion's share in many of the biggest global emerging markets funds, from EEM ( quote ) on down. Saturday night's reading on the Chinese consumer price index revealed that inflation did in fact surge -- as the markets were steeled to expect -- at an annualized rate of 6.4%. Given that the June numbers indicate producer prices surging 7.1% over the last year, I have to admit it looks difficult to see how China has seen the worst of its inflationary cycle.