Economic Indicators

The key to your success will be looking at these economic indicators, extracting what Economic Indicators and key statistics that show where the economy is headed by monitoring inflation.

The reason why inflation is of importance is based on the fact that it influences the level of interest rates. Stability within the economy is maintained as long as inflation is kept under control. Rising inflation reflects rising prices caused by increasing demand and decreased supply.

In other words, the increase in prices of goods and services would erode the purchasing power of the money you make, on the assumption that the money you earn does not increase in line with inflation. To put it simply, Governments use economic indicators as tools to ensure stability within the economy. Consequently the individual indicators of inflation like the consumer price index; unemployment and gross domestic product cannot be directly........

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