Do home price increases threaten inflation?

Now that home prices are rising with a gain of 7.3% from December 2011 to December 2012 in the S&P/Case-Shiller 20 City Composite index, some people are wondering if house prices are about to do to the CPI what gas pumps did in February.  Doubtful — but a full explanation can be found on Macroblog from the Federal Reserve Bank of Atlanta.  Getting through the details of what’s in the consumer price index is never easy, but the housing component can be explained.

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