The index which is likely to respond more quickly to price changes than are the other indexes and it is regarded as a warning sign of inflation is producer price index. Thus the correct answer is B.
The progressive rise in costs and deterioration of your money's purchasing power over time is known as Inflation. It is defined as a broad rise in prices across a sector or industry.
Such as the automobile or energy industries, and ultimately across a country's whole economy. Demand-pull inflation and cost-push inflation are the two main causes of steadily rising prices linked with inflation.
The Producer Price Index is a collection of indexes that track the average change in retail prices received by household goods and service providers across time. Price changes are measured using PPIs from the seller's perspective.
Therefore, the option B producer price index is the correct answer.
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