™An item rising from $100 to $103 illustrates a 3% price increase; a broad inflation measure combines many prices using its own weights.
Economics
Inflation
A broad rise in prices that reduces the purchasing power of money.
Plain-English context
Put the definition to work.
Slower inflation is not falling prices. Specify the basket, interval and whether the change is seasonally adjusted.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Federal Reserve — Real yields and inflation compensation