Statistics that measure the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.
Inflation data, such as the Consumer Price Index (CPI) and Producer Price Index (PPI), are key economic indicators used to gauge the rate of inflation. CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, while PPI measures the average change over time in the prices received by domestic producers for their output. These metrics are crucial for central banks in formulating monetary policy and for investors in assessing economic health and potential market movements.