{"id":28257,"date":"2018-10-24T11:31:35","date_gmt":"2018-10-24T06:01:35","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=28257"},"modified":"2020-04-20T13:50:12","modified_gmt":"2020-04-20T08:20:12","slug":"what-is-the-gdp-deflator","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/what-is-the-gdp-deflator\/","title":{"rendered":"What is the GDP deflator?"},"content":{"rendered":"<p>Source : <a href=\"https:\/\/www.thehindu.com\/business\/Economy\/what-is-the-gdp-deflator\/article24489279.ece\">What is the GDP deflator?<\/a><\/p>\n<p><strong><u>News:<\/u><\/strong><\/p>\n<ol>\n<li>GDP deflator is a more comprehensive measure of inflation.<\/li>\n<\/ol>\n<p><strong><u>Important facts:<\/u><\/strong><\/p>\n<p><u>2. GDP deflator:<\/u><\/p>\n<ul>\n<li>It is a more comprehensive measure of inflation.<\/li>\n<li>The GDP deflator, also called implicit price deflator, is a measure of inflation.<\/li>\n<li>It is the ratio of the value of goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year.<\/li>\n<li>This ratio helps show the extent to which the increase in gross domestic product has happened on account of higher prices rather than increase in output.<\/li>\n<li>The deflator is more comprehensive measure of inflation because it covers the entire range of goods and services produced in the economy.<\/li>\n<li>The formula to find the GDP price deflator:\n<ul>\n<li>GDP price deflator = (nominal GDP \u00f7 real GDP) x 100<\/li>\n<\/ul>\n<\/li>\n<li>Changes in consumption patterns or introduction of goods and services are automatically reflected in the GDP deflator.<\/li>\n<li>This allows the GDP deflator to absorb changes to an economy\u2019s consumption or investment patterns.<\/li>\n<li>Often, the trends of the GDP deflator will be similar to that of the CPI<\/li>\n<\/ul>\n<p><u>3. Real GDP vs Nominal GDP<\/u><\/p>\n<ul>\n<li>GDP price deflator measures the difference between real GDP and nominal GDP.<\/li>\n<li>Nominal GDP differs from real GDP as the former doesn\u2019t include inflation, while the latter does.<\/li>\n<li>Nominal GDP will most often be higher than real GDP in an expanding economy.<\/li>\n<\/ul>\n<p><u>4. WPI, CPI<\/u><\/p>\n<ul>\n<li>A consumer price index (CPI) measures changes in the general level of prices of goods and services that households acquire for the purpose of consumption.<\/li>\n<li>However, since CPI is based only on a basket of select goods and is calculated on prices included in it, it does not capture inflation across the economy as a whole.<\/li>\n<li>The wholesale price index basket has no representation of the services sector and all the constituents are only goods whose prices are captured at the wholesale\/producer level.<\/li>\n<li>The GDP deflator reflects up-to-date expenditure patterns.<\/li>\n<li>GDP deflator is available only on a quarterly basis along with GDP estimates, whereas CPI and WPI data are released every month.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Source : What is the GDP deflator? News: GDP deflator is a more comprehensive measure of inflation. Important facts: 2. GDP deflator: It is a more comprehensive measure of inflation. The GDP deflator, also called implicit price deflator, is a measure of inflation. It is the ratio of the value of goods and services an&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/what-is-the-gdp-deflator\/\">Continue reading <span class=\"screen-reader-text\">What is the GDP deflator?<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-28257","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":1018,"cached_at":""},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/28257","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=28257"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/28257\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=28257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=28257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=28257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}