Why prices continue to rise but reported inflation rate falls.?

Question

Why prices continue to rise but reported inflation rate falls.?

Answer 1

The answer is the labour government makes the figures fit they remove anything that would show the truth and corrupt figures to create a false impression or we could just say they lie.

Answer 2

Cost of production is why prices raise.

Lower interest rates are why the  inflaltion rate

falls.

[Price is determined by the need for the product.

(Supply and demand.)  When less of a product

is needed, the cost of the production of the product goes up, so that would make it the true

price of the item.  (Also when it takes more money to produce the product, regardless of the amount of buyers that purchase the product.)

When the interest rates rise, and something is purchased with a high rate charge card, loan or  mortgage, the price is inflated by the high interest rate.   The inflation caused by the interest rate falls, in time, when the interest rate is lowered.]

Answer 3

The inflation rate falls is a lie.  I have heard one news report that sounded something like this.."Inflation rates are stable..if you take out gas prices and food prices".  Of course gas prices and food prices are two most important negative inflationary items that lead to suffering of people and the economy.  Gasoline prices affect all of business travel and are causing airlines to raise prices and forcing businesses to shut down or raise prices to stay afloat...triggering a chain reaction.

Answer 4

Inflation rate measures the rate of change in the level of prices. So if prices continues to rise but at slower and slower rates, inflation rate will fall.

Take this example.

Say prices rose from $10 to $15 in first year .So the inflation rate in first year was 50%.

Next prices rose from 15 to 18. The inflation rate now falls to

20% (increase of 3 divided by base of 15.