KUALA LUMPUR — Malaysia’s inflation rate is slowing, yet the cost of a meal or a basket of groceries can still feel high for households.

If inflation is falling, why do a plate of nasi lemak, a basket of groceries or a meal at a restaurant still cost more than they did a year or two ago?

When someone says, “It is because of inflation”, what does that actually mean?

Inflation measures how quickly the overall prices of goods and services are rising, rather than whether prices themselves are high or low.

When inflation falls, prices can continue to increase — only at a slower pace. Take a plate of nasi lemak that costs RM5.

If its price rises to RM5.50 the following year, that is a 10 per cent increase and if it then rises to RM5.61 the year after, the increase is about 2 per cent.

The nasi lemak still costs RM5.61, even though inflation has fallen from 10 per cent to 2 per cent.