Inflation Fig. is a term used to refer to two economic indicators, the PSI and the CPI. The PSI stands for Producer Price Index, which measures the average change in prices received by domestic producers for their goods and services. The CPI stands for Consumer Price Index, which measures the average change in prices paid by consumers for a basket of goods and services. Both of these indicators are used to measure inflation, which is the rate at which the general level of prices for goods and services is rising.