Can the inflation rate be decreasing at the same time the price level is rising?

Yes, the inflation rate can decrease while the price level continues to rise. This situation occurs when the rate of price increases slows down, even though prices are still rising overall. For example, if the inflation rate drops from 4% to 2%, prices may still increase, but at a slower pace than before. Thus, while the overall price level is higher, the rate of increase is less pronounced.