In Fareed Zakaria's book The Post American World Order, he makes a great point that India (services) and China (goods) have been deflationary for certain goods/

In Fareed Zakaria's book The Post American World Order, he makes a great point that India (services) and China (goods) have been deflationary for certain goods/services in expensive economies. If you think of CPI as an average of deflationary and (local, expensive) inflationary products, the trend we are seeing in the US of large local assets (with local cost basis) versus a cellphone (Chinese cost basis), the stagnant measure of CPI versus the increases we see in local costs of living is better explained. All these metrics are faulted and manipulated. The underlying desire of capitalist institutions making a markup on every possible local market ("rents") in is inflationary to local costs and when the external markets costs go up, that's when total inflation will go 'shazam'.