In this global market place, is this an indication that inflation not deflation is the issue? And with underemployment being so high, is this really an indicator of stagflation. We could be looking at increased prices for food, energy, and capital (interest rates). All that will have impact on housing prices and rents. If fact, housing costs (as measured by rents not mortgage costs) is one of the few CPI elements that have been decreasing.
China's food price inflation spiked to 6.8 percent in July over a year earlier, pushing overall inflation to 3.3 percent, its highest level this year, according to government figures.
Elsewhere, a jump in food prices triggered deadly riots in Mozambique this week and the poor in Asia, the Middle East and Africa are under strain after global prices jumped 6 percent in the past two months alone.