The gold price is also seen by some economists as a leading indicator of inflation.

ECONOMIST: Central banks and the bullion price

January's increase comes after three months of declines in the index, which is a key indicator of inflation.

FORBES: Magazine Article

The price of gold, the most sensitive indicator of inflation, remains low.

FORBES: How to Bomb the Boom

The best indicator of inflation is gold.

FORBES: Magazine Article

This is either an indicator of coming inflation or, says Stephen Roach of Morgan Stanley, a terrific buy signal for bonds.

ECONOMIST: Inflation in America

Several economic studies suggest that while the link between money and inflation has proved fickle in individual countries, pan-European measures of money are much more stable and a good indicator of growth and inflation in the region as a whole.

ECONOMIST: Remember monetarism? It may be coming back into fashion

As the most widely used measure of inflation, the CPI is an indicator of the effectiveness of government policy.

FORBES: Why the Buy and Hold Strategy Can Work. Part Three

Significantly, non-food manufactured products inflation, an indicator of demand side pressure, rose sharply from 4.8% in January to 6% in February and continues to stay well above its medium-term trend.

FORBES: India Inflation Outlook Sours, Commodities Blamed; Real Rates Next to Zero

The point seems obvious, but can be missed: Inflation is just one indicator of economic health.

CNN: QUIPPED ONE ANONYMOUS

The Fed closely watches a cumbersome-sounding index, the core personal consumption expenditure deflator, for signs of inflation, and in the last few months, that indicator has dropped within the range Bernanke has been looking for--after three years of coming in above his range.

FORBES: Magazine Article