The Inflation Rate Is Falling, but Prices Are Not
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.
Teachers: Visit the Reading Q&As in our Econ Lowdown Teacher Portal to find the teacher edition (including an answer key) for this issue; to assign an online version of the student materials; and to collect student scores on the questions.
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