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Real estate prices drive inflation in China and the United States.
The study looked at how inflation and real estate prices are connected in China and the United States from 2006 to 2023. They found that changes in real estate prices can lead to inflation in both countries. However, in China, high inflation rates can actually lower real estate prices, while in the United States, inflation tends to increase real estate prices. These findings help us understand how inflation and real estate prices are linked, which can be useful for making economic policies and monitoring inflation.