This happened to me as well today.
Sailfish OS Version 1.0.3.8
I could not peek, the swipe from edges does not respond, etc. Load average was 5.58,4.78,3.6 and CPU was 60%us & 34%sys
Problem processes where same as the OP - contactsd, lipstick, msyncd
I killed lipstick proc and it restarted the GUI and the phone started responding to touch. But contactsd was still stuck at high cpu. I killed both of those the phone CPU/Load seems to be recovered. CPU 2%us, 1%sy. Load average 0.69,0.95, 1.8
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