Life is getting more expensive these days, and exchange traded funds (ETFs) could reflect it.

Wholesale prices are shooting up at their fastest clip since 1981. Inflation surged 1.2% in July, more than twice what had been expected, reports Martin Crutsinger for the Associated Press. Blame energy and food costs.

Prices excluding food and energy rose 0.7%, and it was more than triple the 0.2% expected. Food prices rose 0.3%, down from a 1.5% jump in June. Beef got the most expensive, rising up 7.4%.

Home construction also fell to its lowest pace in 17 years. That’s pretty strong evidence that the housing market is far from out of crisis. Building permits also fell 17.7%, Lisa Lambert for Reuters reports.

• SPDR S&P Homebuilders (XHB), down 4.7% year-to-date
• iShares Dow Jones US Home Construction (ITB), down 12.4% year-to-date
• Retail HOLDRs (RTH), up 2.7% year-to-date
• SPDR S&P Retail (XRT), down 5.1% year-to-date
• Consumer Staples Select Sector SPDR (XLP), up 0.5% year-to-date

For full disclosure, some of Tom Lydon’s clients own shares of XLP.

Tags: Consumer Staples, Homebuilders, ITB, Retail & Consumer, RTH, Sector ETFs, XHB, XLP, XRT