Inflation indicators are economic metrics that help measure the rate at which prices for goods and services rise over time. Common indicators include the Consumer Price Index (CPI) and the Producer Price Index (PPI). The CPI tracks changes in the price level of a basket of consumer goods, while the PPI measures price changes from the perspective of producers. These indicators are crucial for policymakers and economists as they provide insights into the economy's health. Rising inflation can erode purchasing power, prompting central banks like the Federal Reserve to adjust interest rates to stabilize the economy.