Economic IndicatorsEconomic indicators are various levels of statistics that provide information and insights into the functioning of an economy. An economist might use economic indicators to paint a picture of current economic performance or make future economic predictions. As a team, we will profile six economic indicators: consumer price index, capacity utilization, unemployment rate, producer price index, interest rate, and inflation rate. Historical charts for each indicator are included in our PowerPoint presentation. As we move forward, we will use this information to help us better understand our selected business, the airline industry. Consumer Price Index (CPI) The Consumer Price Index is published by the federal Department of Labor to measure the cost of living in the United States. The index measures the general level of prices in a fixed basket of goods generally purchased by consumers. It translates the price of goods such as food, drink, housing, clothing, transportation, medical care, and entertainment from what they were in previous years to what the same goods or services would cost today. The Consumer Price Index allows anyone who looks at it to determine how much money they need to spend today to live the same lifestyle as in previous years. The annual percentage change in the index value is one way of measuring the annual inflation rate. When the consumer price index rises, it is an indication of an inflationary environment and that consumers will pay more for the same goods or services than they did in the past. In contrast, when the consumer price index falls, consumers will pay less for the same goods or services than they pay...... middle of paper ......//en.wikiped Wikpedia, Retrieved on June 16, 2006 by ia. org/wiki/Northwest_Airlines).Wikpedia, Retrieved June 16, 2006, from http://en.wikipedia.org/wiki/Producer_Price_IndexInvestopedia, Retrieved June 16, 2006, from http://www.investopedia.com/university/releases/ppi .aspBureau of Labor Statistics, Retrieved June 16, 2006, from http://www.bls.gov/news.release/ppi.nr0.htmWikpedia, Retrieved June 17, 2006, from http://en.wikipedia.org/wiki/ Inflation_rateRTE Business, Retrieved 17 June 2006 from http://www.rte.ie/business/2005/0119/us.htmlBBC News, Retrieved 17 June 2006 from http://news.bbc.co.uk/1/hi /business/ 5079930.stmAlpha, retrieved June 16, 2006 from www.alpha.orgOnline Investor, retrieved June 16, 2006 16, 2006 from www.theonlineinvestor.comPBS, retrieved June 16, 2006 from www.pbs.orgMoney Central, retrieved on June 16, 2006 from www.moneycentral.msn.com