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CarouselAdultsBeginnerBehavioural FinanceSeptember 21, 2026
Inflation Fell. So Why Are Prices Still High?
Interactive · Try it yourself ↓Falling inflation and falling prices are not the same thing. The 100→105→109.20→111.38 math behind why a slowing rate still means prices keep climbing.
Try it yourself
Change each year's inflation rate and watch the price level.
Inflation rate
Price level (starting at 100)
Year 3 price level: 111.38
In Year 3, the same money buys about 90% of what it bought in Year 0.
As long as the rate stays above zero, prices keep rising. A lower rate only means they rise more slowly.
Illustrative example. The inflation rate is an average; your own prices may rise faster or slower.
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