Final answer:
The Consumer Price Index (CPI) is the measure of the average change in the prices for consumer goods and services over time, serving as a key indicator of inflation.
Step-by-step explanation:
The measure of the average change in the prices paid by consumers for typical consumer goods and services over time is known as the Consumer Price Index (CPI). The CPI is used as a key indicator to assess inflation and reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and services. These goods and services are chosen to represent what an average family of four might purchase, and the index is adjusted periodically to account for changes in consumer habits and preferences. As the CPI measures how much more or less expensive this basket becomes over time, it directly influences economic policies and cost-of-living adjustments. The other mentioned terms -- Gross Domestic Product (GDP), Inflation Rate, and Producer Price Index (PPI) -- refer to different economic indicators. GDP measures the total value of goods and services produced in a country, the inflation rate refers to the rate at which prices as a whole are rising, leading to a loss of currency purchasing power, and the PPI measures average changes in selling prices received by domestic producers for their output. While related, these indicators serve different functions in economic analysis.