Inflation is a sustained increase in a general measure of prices over time. A cost-of-living experience is personal: it reflects the goods and services that a particular household buys.
The basket matters
A national consumer price index uses a defined methodology to measure price changes across categories. Your spending basket might assign much more weight to rent, transport or school expenses than the statistical average.
Inflation slowing is not necessarily falling prices
When an inflation rate falls from 6% to 3%, prices may still be rising, just more slowly. An outright decline in the general price level is usually called deflation.
Compare like with like
A year-over-year inflation measure compares a price index with its level 12 months earlier. A month-over-month reading compares it with the preceding month. The two are different measures, and seasonal adjustments can matter.
A simple illustration
If a basket costs 100 monetary units and the price rises to 104, that is a 4% increase. If the same basket later rises from 104 to 106, the additional increase is about 1.92%, not 2% of the original base.
Before interpreting a headline, check the source, geographic scope, timing and measurement method. No single inflation number captures every family's experience.