Which of the following is an example of an economic indicator?

The Consumer Price Index (CPI) is a crucial economic indicator as it measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. By tracking price changes, the CPI provides valuable insights into inflation trends and purchasing power, informing government policy, economic research, and financial markets.

It is widely used to assess price stability and to adjust income payments and benefits, making it a key metric for understanding the economic health of a nation. When economists analyze the CPI, they can gauge whether consumer prices are rising or falling and evaluate the cost of living, which influences economic decisions at both individual and governmental levels.

Other choices, while related to economic conditions, serve different roles. Stock prices reflect investor sentiment and market conditions but do not directly measure economic health. Corporate earnings indicate a company's profitability but can be highly variable and not representative of the broader economy. Interest rates are a tool for monetary policy and influence borrowing costs but are considered rates rather than indicators themselves. The CPI stands out as a widely recognized and direct measure of consumer inflation, making it the best choice as an economic indicator.