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Policymakers, businesses, and investors all keep a close eye on inflation, which is the rise in the price of goods and services. A little bit of inflation is usually a sign of economic growth, while too much inflation can hurt the economy. With millions of goods and servicesbought and sold every day, how do we know how inflation affects the whole economy? Thats wherethe inflation indexes come in. Inflation indexes gather price data from various sources across the economy and compile them into one number to give a snapshot view of how much things cost and how those costs are changing over different time periods. Seeing how much and how quickly prices are rising or falling can tell you a lot about economic growth, or the lack thereof, that drives financial markets and can impact your investment strategy. There are three main inflation indexes that weamp;#39;ll focus on, which are best known by their acronyms: the CPI, the PCE, and the PPI. Each oneis compiled
