Series 50: Important Lagging Indicators

Important Lagging Indicators

Consumer Price Index (CPI). The CPI is a monthly report released by the Bureau of Labor Statistics. It measures changes in the price of a “basket of goods” that a typical consumer might purchase, including food and energy products.

The CPI is considered the best measure of inflation. The release of the CPI has a large effect on both the equity and debt markets because it gives a strong indication of whether the Federal Reserve will alter interest rates. 


Other lagging indicators:

•Business spending

•Unemployment report

•Prime rate charged by banks

•Bank loans outstanding

•Employment Cost Index (ECI)—monthly changes in employee wages and benefits

The exam may ask a question like