Unemployment Rate : Labor Force Participation :: Inflation Rate : ?

To understand the relationship between the unemployment rate and labor force participation, we can look for a similar connection with inflation. The unemployment rate measures how many people are looking for work but can't find jobs, while the labor force participation rate tells us how many people are actually working or actively seeking work. In a similar way, the inflation rate shows how much prices for goods and services are rising. The concept that relates to inflation, like labor force participation does to unemployment, is the Consumer Price Index (CPI), which measures changes in the price level of a basket of consumer goods and services. For example, if the CPI increases, it indicates that inflation is happening, just as a high unemployment rate indicates many people are without jobs.