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

• 2015: $6.34\%$
• 2016: $5.27\%$
• 2017: $4.78\%$
• 2018: $4.8\%$
• 2019: $5.3\%$

• 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:

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.