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SIE: Capital Markets & Offerings
SIE practice questionmediumEconomic Indicators

A significant rise in which economic indicator most likely signals higher inflation risk?

  1. AGross Domestic Product (GDP)
  2. BUnemployment rate
  3. CConsumer Price Index (CPI)✓ Correct answer
  4. DFederal funds rate
Explanation

Why CConsumer Price Index (CPI)

CPI measures changes in consumer prices and is a key inflation indicator. Unemployment tracks joblessness, GDP economic output, and the federal funds rate is a short-term interest rate.

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