Why can inflation fall while the cost of living still feels high?
One point that often gets lost in inflation discussions is the difference between falling inflation and falling prices.
If inflation declines from 8% to 3%, prices are still rising—just more slowly. The earlier increase in the price level does not automatically reverse.
That helps explain why official inflation data can improve while households still feel financially pressured.
What do you think is the clearest way to communicate this distinction without oversimplifying it?
Posted Jul 30, 2026, 3:29 AM UTC
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