Recently, the United States dollar tree store company announced that it would increase the unit price of most of its dollar tree discount grocery stores (commonly known as "dollar stores") from $1 "permanently" to $1.25, breaking the company's 35 year retail concept of "selling only $1". The permanent price rise of "dollar stores" shows that retailers are passing on part of the cost rise to consumers, which is an epitome of the widespread rise in inflationary pressure in recent months.

According to the data of the U.S. Department of labor, the consumer price index (CPI) rose 6.2% year-on-year in October, the largest year-on-year increase in nearly 31 years. The survey showed that consumers' inflation expectations for the next year rose to 4.9%, the highest level since 2008.

According to the house price index of the Federal Housing Finance Agency (FHFA), house prices rose by 18.5% year-on-year in the third quarter of 2021, with a record quarterly increase; It rose 4.2% month on month, second only to the second quarter of this year. In the third quarter, house prices in all 50 states, the top 100 cities and Washington, the capital, rose year-on-year, and house prices in Philadelphia, the weakest increase, also rose 9.9%.

Obviously, the Fed's unlimited quantitative easing policy has caused a flood of liquidity. These funds flow to the stock and real estate markets, pushing stocks and house prices all the way up.

The decline in borrowing costs is an important reason for the rise in house prices. Since the outbreak of the epidemic, the central banks of major economies have adopted loose monetary policy. The Federal Reserve has reduced interest rates to the lowest level and reduced borrowing costs, thus increasing housing demand and making house prices rise against the trend in the environment of weak economy.

The mismatch between supply and demand growth rate is also one of the reasons for the continuous rise of house prices. The US government's crazy "printing money" to subsidize families has greatly stimulated people's enthusiasm for house purchase.

A survey of economists recently released by the National Association for business economics shows that high inflation in the United States will continue until at least 2023 due to many factors such as supply chain bottlenecks.