"Goods inflation has outstripped services inflation for long stretches since mid-2007, something that hadn't happened since the 1970s. For most of the last 30 years, goods prices had been held down, in part, by cheap imports from low-wage countries like China. But recently, China and other developing markets have become huge consumers of commodities, which is putting upward pressure on American prices for many globally traded goods." Read more. "Split in Economy Keeps Lid on Prices" Jon Hilsenrath and Justin Lahart Wall Street Journal, February 18, 2011. Image by renjith krishnan / FreeDigitalPhotos.net.