Final answer:
Aside from the Consumer Price Index (CPI) and Producer Price Index (PPI), the Retail Sales Index is another key monthly indicator used in the United Kingdom to measure inflation. It tracks changes in consumer spending and can indicate inflationary trends. Other indices like the International Price Index, Employment Cost Index, and the GDP deflator also provide valuable insights into inflation from various economic perspectives.
The correct option is b.
Step-by-step explanation:
Besides the Consumer Price Index (CPI) and Producer Price Index (PPI), another key monthly indicator often used to measure inflation in the United Kingdom is the Retail Sales Index.
The Retail Sales Index reflects the performance of the retail sector by measuring changes in the value of sales. This indicator can indirectly signal inflationary or deflationary pressures by showing changes in consumer demand and spending, which can impact pricing dynamics.
The Consumer Price Index is designed to measure the average price change over time for a fixed basket of goods and services purchased by households.
The Producer Price Index measures the average change over time in the selling prices received by domestic producers for their output. Both indices are considered critical for understanding inflation from different perspectives—the consumer side and the producer side, respectively.
Other indices include the International Price Index, which is based on the prices of merchandise that is exported or imported, the Employment Cost Index, which measures wage inflation in the labor market, and the GDP deflator.
The GDP deflator is a broad measure of inflation within the economy that includes all components of GDP and is not constrained to a fixed basket of goods and services like the CPI.
The correct option is b.