Inflation is slowing, but the cost of living story is more complicated

Inflation is often misunderstood as a force that makes everything more expensive. In reality, it’s a term economists use to describe a general increase in prices across the economy. Inflation does not mean every price is rising. Some goods become more expensive, some become cheaper and others barely change. Inflation measures the overall direction of prices. In 2022, inflation in Canada reached eight per cent, its highest level in decades. By February, it had fallen to 1.8 per cent before…