Is inflation starting to smolder? There may be some smoke, if price data from the United Kingdom is telling.

Inflation in Britain, which, like the U.S., passed a fiscal stimulus package, rose at an annual rate of 2.9% in December, 1 percentage point higher than the annualized rate reported for November, Bloomberg News reported Tuesday.

Further, the consensus now argues that the Bank of England will increase its key, short-term interest rate from the current 0.50% to 1% in Q4 2010, according to a Bloomberg News survey.

Europeans and Asians have positive views of President Barack Obama, according to the latest Quarterly Bloomberg Global Poll of investors and analysts. Americans, on the other hand, are split down the middle.

According to the study, 87% of respondents in Asia and Europe rate Obama favorably. In the United States, only 49% share this perspective -- a number that drops to around 25% when only his economic policies are considered. Much of this difference comes from an overseas distaste for the previous White House resident, but it seems people in this country are less interested in distinctions: 43% of respondents favored Bush's policies to Obama's (compared to 80% overseas).

European leaders of the Group of 20 took the first step in market regulation. The leaders said that all financial products, including hedge funds must be regulated.

The leaders also said that the resources of the International Monetary Fund must be doubled to $500 billion. British Prime Minister, Gordon Brown, said that the increased funds should be used to help Eastern European economies.

Members who were polled agreed that "all financial markets, products and participants including hedge funds and other private pools of capital which may pose systemic risk must be subjected to appropriate oversight and regulation."

There may be a glimmer of progress regarding oil policy, and by extension, oil prices. To be sure, it's nothing likely to immediately relieve the pain at the pump that American and European motorists are feeling, but it could point the way toward a moderation in price increases.

United Kingdom Prime Minister Gordon Brown, warning that the world is facing an oil shock, has proposed that governments around the world take coordinated action to mitigate price increases, The New York Times reported. Also, on Monday, Saudi Arabia's oil minister Ali al-Naimi called for a meeting of oil producing and consuming nations to discuss how to deal with high oil prices, Bloomberg News reported.

Oil Monday closed down $4.19 to $134.45 per barrel. Still, oil is up more than 100% in the past year, and more than 400% since 2000.