Top 15 U.S. Economic Indicators Every Investor Should Know

3. The Consumer Price Index (CPI)

The Consumer Price Index (CPI) is a key economic indicator that measures the change in the prices of goods and services from the perspective of the consumer. This significant economic indicator helps gauge inflation rates and purchasing power in an economy. CPI is widely used by central banks and governments to monitor inflation and make informed decisions. A CPI within a target range of 2 to 3% is generally considered good for the economy, as it indicates stable inflation and economic growth, therefore, indicating a good time for investing. Investing during periods of high inflation can be risky due to reduced purchasing power and potential economic instability.