If wages and costs for everything (but RE) are increasing it only means those dollars are devaluing. The nominal price changes in RE may not be as much but the value will still have declined because you’ll need more 2011 dollars to buy the same stuff that you can buy now with fewer 2006 dollars.
In effect, inflation forces the masses to pay for the mistakes and the greed of the fools, while making us even less competitive in the global economy. That’s why I’d prefer more correction and less inflation.
