You may have heard, “Inflation is cooling!” This is welcome news to families struggling to pay for food, rent and utilities. Finally, now they can make it to the end of the month without skipping some essentials or reluctantly digging out that credit card. They might even be able to save.

However, when they arrive at the grocery store, something is not right. Prices are still sky-high.

How is this possible? We just heard that inflation was cooling.

When the Federal Reserve tells us inflation is cooling or easing, all it is saying is that the rate or speed of price increases is slowing. In short, prices are still rising — just not as quickly.

Why is everything still so expensive? Because the value of your dollar has been damaged.

Imagine a burning house. Even when the flames begin to die down or “cool,” the damage has already been done. That’s what has happened to the value of your dollar.

Since January 2021, prices on everything are up 20%, on average. That’s not the speed of the fire; it’s the total amount of damage. Since then, the typical American family has been paying $1,085 more monthly for the same goods and services. The family has to earn more than $13,000 annually to afford the same standard of living.

Everyone will agree that a 20% price jump in under four years is not normal, so what caused this? Simply, government spending and money printing. This spending and printing burned down the value of your dollars — increasing prices by 20%. That’s why it now takes more of them to buy the same things you usually do.

The only thing that can cause rising prices is the mass creation of new dollars, better known as “money printing,” to pay for federal government spending.

From January 2017 through December 2020, the federal government spent $20 trillion, creating a $5.5 trillion deficit. From January 2021 through December 2024, if current estimates remain on track for the fourth quarter, the federal government will spend $26 trillion — a 30% increase — adding an additional $7.9 trillion to the deficit.

Where did the money mostly come from to pay for these deficits? The government printed it. This spending and the deficits have fueled the fire of price inflation.

However, even if Congress could tame its habitual deficit spending sprees, the Federal Reserve (the country’s central bank) still aims to create 2% inflation yearly. This may sound reasonable, but 2% compounds and means that the fire of inflation is always burning, although sometimes, like in the last four years, it’s burning faster and hotter than others.

For American families, it means the value of their earnings and savings is being eaten away by 2% annually, at a minimum. Because of this, prices always move steadily upward.

In 2024, the fire of inflation may finally be cooling, but 20% of your financial house has already burned down.

If you’re still not convinced, check out the Personal Inflation Calculator at myinflation.com to see how much more you pay monthly.

Paul Mullen is the RISE Campaign Lead and a senior marketing associate at The Heritage Foundation/InsideSources.com.