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- Changes in CPI are used to assess price changes associated with the cost of living.
- Industrial production figures are also used by central banks to measure inflation, as high levels of industrial production can lead to uncontrolled levels of consumption and rapid inflation.
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- For example, when the economy is healthy, you will typically see low unemployment and wage increases as businesses demand labour to meet the growing economy.
- PMI is a very important sentiment reading, not only for manufacturing, but also for the economy as a whole.
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