Investing in Emerging Markets

Over the past two years, house prices are up 37% but owner's equivalent rent is only 7%. That implies there is much more house inflation that has to make its way into the overall flation rate. We're expecting o e r to come in high single digits, let's call it, six to nine % per annum for the next three years. You can't get inflation back down to two if one third of c p i is playin catchup.