In the economy, GDP deflator ( implicit price deflator ) is a measure of the price level of all newly manufactured goods and services domestically in an economy. GDP stands for gross domestic product, the total monetary value of all final goods and services produced within the territory of a country over a period of time (every three months or every year).
Like the consumer price index (CPI), the GDP deflator is a measure of price/deflation inflation with respect to a given base year; The base year GDP deflator itself equals 100. Unlike the CPI, the GDP deflator is not based on a fixed basket of goods and services; "basket" for GDP deflator allowed to change from year to year with the pattern of consumption and public investment.
Video GDP deflator
Calculation
Measurement in national account
Di sebagian besar sistem neraca nasional, deflator GDP mengukur rasio PDB nominal (atau harga saat ini) terhadap ukuran riil (atau volume rantai) dari PDB. Rumus yang digunakan untuk menghitung deflator adalah:
The nominal year nominal GDP is calculated using the year's price, while the real GDP of that year is calculated using the base year price.
The formula implies that dividing nominal GDP with GDP deflator and multiplying it by 100 would give real GDP, then "deflate" the nominal GDP into real size.
It is often useful to consider implicit price deflators for certain subcategories of GDP, such as computer hardware. In this case, it is important to consider the price deflator as the current year's price ratio of an item against its price in a base year. The price in the base year is normalized to 100. For example, for computer hardware, we can define "units" to be computers with certain processing power levels, memory, hard drive space and so on. A 200 price deflator means that the current price of this computing power is twice the base year price - price inflation. The 50 price deflator means that the price this year is half the price of the base year - price deflation. This can lead to a situation where official statistics reflect a fall in prices, although they remain the same.
Unlike some price indexes (such as CPI), the GDP deflator is not based on a fixed basket of goods and services. Baskets are allowed to change with consumption patterns and public investment. Specifically, for the GDP deflator, the "basket" in each year is the set of all goods produced domestically, weighted by the market value of the total consumption of each good. Therefore, new spending patterns are allowed to appear in the deflator when people respond to price changes. The theory behind this approach is that the GDP deflator reflects current spending patterns. For example, if the price of chicken increases relative to the price of beef, it is claimed that people are likely to spend more money on beef instead of chicken.
In practice, the difference between a deflator and a price index such as the Consumer Price Index (CPI) is often relatively small. On the other hand, with governments in developed countries increasingly using price indexes for everything from fiscal and monetary planning to payments to recipients of social programs, even a small difference between the size of inflation can shift income and budget spending by millions or billions of dollars.
Pakistan
Bank Negara Pakistan reports the real GDP Deflator and GDP of Pakistan.
India
The GDP deflator in India is reported by the Ministry of Statistics and Program Implementation (India).
AS
The GDP and GDP deflators are calculated by the US Bureau of Economic Analysis.
United Kingdom
Series of GDP and GDP deflator published by the Office of National Statistics.
Canada
GDP series and GDP deflator published by Statistics Canada.
Australia
GDP and GDP deflators are calculated by the Australian Bureau of Statistics. Argentina
GDP and GDP deflator is calculated by INDEC.
Japanese
The GDP and GDP deflator is calculated by the Cabinet Office (Japan).
Hong Kong
Series of GDP and GDP deflator published by the Census and Statistics Department (Hong Kong).
Nepal
GDP series and GDP deflator published by the Central Bureau of Statistics.
Maps GDP deflator
See also
- Fisher index
- Etienne Laspeyres
- Hermann Paasche
- Chained volume series (from GDP data.)
- The Implicit Price Deflator for Personal Consumption Expenditure (IPD for PCE)
- Inflation
- GDP
References
External links
- Gross Domestic Product Deflator (PDB): user manual
Data
- OECD GDP deflator data
- IMF database of GDP country deflator for 1980-2013
- Briefing.com: GDP-Adv.
- Compare with Briefing.com: CPI
Source of the article : Wikipedia
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