In the business world, leading inflation indicators measure how quickly prices of goods and services are increasing—or in other words, the rate of inflation. These indicators are closely watched by economists to assess the state of the economy over time. The most commonly tracked leading inflation indicators include changes in consumer spending, movement in stock and bond markets, output from factories, unemployment claims, and interest rates. By measuring these trends, economists can predict future levels of inflation more accurately and anticipate possible downturns or booms in the market.