Economic indicators like the Consumer Price Index (CPI) help track changes in the economy from "summary" of Economics for Beginners by Andy Prentice,Lara Bryan
Economic indicators are tools that help us understand how well an economy is doing. One of these indicators is the Consumer Price Index (CPI), which tracks changes in the prices of goods and services over time. When the CPI goes up, it means that prices are rising, which can be a sign of inflation. On the other hand, when the CPI goes down, it indicates that prices are falling, which could be a sign of deflation. Tracking changes in the CPI is important because it gives us insight into how the cost of living is changing for consumers. If prices are rising faster than wages, people may struggle to afford the same goods and services they used to. This can lead to a decrease in purchasing power and a decrease in overall economic activity. On the ot...
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