Which of the following is often watched closely as a clue to potential changes in consumer prices in the future?
A)The CPI.
B)The PPI.
C)The GDP deflator.
D)The COLAs.

Question

Quizplus · Accepted Answer

The PPI, or Producer Price Index, measures the average change over time in the selling prices received by domestic producers for their output. This can give an indication of potential changes in consumer prices in the future, as higher producer prices may eventually result in higher consumer prices. The other options listed (CPI, GDP deflator, and COLAs) may also be useful in analyzing changes in prices, but are not typically watched as closely as the PPI in this context.

Which of the Following Is Often Watched Closely as a Clue