An increase in the Consumer Price Index is commonly referred to as

1. economic growth.
2. inflation.
3. unemployment.
4. discouraged workers.
5. deflation.

My answer is "B".  Recall that the Consumer Price Index is made up of a fixed market basket so that only the prices change.  Since the prices change while the quantity bought in each period stays the same, the CPI measures price changes.  In this case the price level is increasing so it must be a time of inflation.