well you can have deflation in some things while you have inflation in others.
If inflation of the 8-10% variety became entrenched , as it did in the 70's and 80's, you would see fall in house prices because interest rates would be higher.
In fact, the whole measure of inflation is considerably bogus.
The sort of inflation that determines the ability of people to do things like invest in ten year government bonds, doesnt depend on the price of groceries. People don't save their money for a long time to buy groceries.
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well you can have deflation in some things while you have...
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