State newspapers rue new feature of inflation (3,8)

I believe the answer is:

air pressure

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'inflation' is the definition.
Although both the answer and definition are singular nouns, I can't understand how they can define each other.

'state newspapers rue new feature' is the wordplay.
'state' becomes 'air' (air is a kind of state).
'newspapers' becomes 'press' (I've seen this before).
'new' indicates an anagram.
'feature' indicates putting letters inside.
'rue' with letters rearranged gives 'ure'.
'press' going into 'ure' is 'pressure'.
'air'+'pressure'='AIR PRESSURE'

'of' is the link.

Can you help me to learn more?

I've seen this clue in the Sydney Morning Herald.

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