Define inflation. Identify the second highest inflation rate from the provided data. Explain if a decrease in inflation means prices are decreasing.

Welcome back — been a while! Let's pick up where you left off. 1.2.1 Inflation is the general increase in the prices of goods and services over a period of time, which reduces the purchasing power of money. 1.2.2 Step 1: List the inflation rates from the table. • 2015: 6.34\% • 2016: 5.27\% • 2017: 4.78\% • 2018: 4.8\% • 2019: 5.3\% Step 2: Identify the highest and second highest rates. • Highest rate: 6.34\% (in 2015) • Second highest rate: 5.3\% (in 2019) The year in which the inflation rate was the second highest is: 2019 1.2.3 No, a decrease in the inflation rate does not mean the prices of goods went down. A decrease in the inflation rate means that prices are still increasing, but at a slower rate than before. For prices to go down, the inflation rate would need to be negative (deflation). Since the inflation rate in 2017 is still positive (4.78\%), prices continued to rise, just not as sharply as in 2016. Send me the next one 📸