The Inflation Rate Is Falling, but Prices Are Not

Abstract: Inflation is likely a topic your students are familiar with, but there is still a lot of confusion around the concept. This brief article explains the seeming paradox we see in our economy: The inflation rate is decreasing, but prices continue to increase. We’ll also disentangle the concepts of inflation, disinflation, deflation, and the CPI.

Keywords: inflation; disinflation; deflation; consumer price index (CPI);

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Page One Economics Newsletter

Publication Date: 2024-03

Pages: 5 pages