The two types of inflation aren’t independent the one from the other. Rising commodity prices feed into rising real estate prices, as investors rush to buy real assets that are expected to keep up or even exceed the rate of inflation. Conversely, rising real estate prices feed into consumer inflation through what economists call “real wealth effect.”
The two types of inflation aren’t independent the one from the other. Rising commodity prices feed into rising real estate prices, as investors rush to buy real assets that are expected to keep up or even exceed the rate of inflation. Conversely, rising real estate prices feed into consumer inflation through what economists call “real wealth effect.”
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