Close Menu
BestNewsOnline
    Facebook X (Twitter) Instagram
    BestNewsOnline
    • Retirement planning
    • Insurance
    • Real estate
    • Subscription
    BestNewsOnline
    Home»Personal Finance»Inflation rate formula: how to calculate the inflation rate using the GDP deflator?
    Personal Finance

    Inflation rate formula: how to calculate the inflation rate using the GDP deflator?

    November 2, 20221 Min Read
    WhatsApp Facebook Telegram

    Owith inflation rate rising worldwideknowing how to calculate the rate using the GDP deflator is a useful tool.

    Inflation itself is the percentage change in price level from one period to another.

    For example, if a good or commodity cost $100 in 2019 and that same good or commodity reached $110 in 2020, the inflation rate for 2020 would be 10%.

    How to Calculate Inflation Using the GDP Deflator

    GDP deflator is a measure of the price level in an economy and is measured as a ratio of nominal GDP to real GDP.

    It means that GDP deflator is calculated as nominal GDP divided by real GDP multiplied by 100.

    Since inflation is the percentage change in the overall price of an item in an economy, we can use the GDP deflator to calculate the rate of inflation since it is a measure of price level .

    Inflation rate is simply the percentage change in the GDP deflator from period to period.

    Mathematically, we can write it as the year 2 GDP deflator subtracted by the year 1 GDP deflator, divided by the year 1 GDP deflator, and then multiplied by 100.

    Add A Comment
    Leave A Reply Cancel Reply

    What's hot

    Keeping Current Matters Offers Real Estate Agents Biggest Black Friday & Cyber ​​Monday Membership Discount Ever

    November 17, 2022

    Best day to browse discounted real estate listings

    November 19, 2022

    China’s outlook darkens further on fresh COVID-19 surge and real estate crisis

    November 16, 2022

    Survey says 89% of colleges and universities prioritize mental health coverage for students – InsuranceNewsNet

    January 30, 2023
    Don't miss

    UWS Apartment Offers Stunning Views of the Hudson: Real Estate Spotlight

    October 21, 2022

    How Inflation Changed the Real Estate Market

    November 3, 2022

    Behrooz Davani – Real Estate Agent – Real Estate Broker – Griffintown – Downtown

    October 21, 2022
    Picked for you

    LACERA invites tenders for the system’s emerging real asset management program

    Retirement planning February 2, 2023

    The Los Angeles County Employees Retirement Association invites proposals from qualified companies to implement the…

    BestNewsOnline.net is owned and managed by

    Top10 International FZ LLE
    Office 2002, 20th Floor, Creative Tower
    Fujairah, United Arab Emirates
    TRN: 100608946800003

    • Home
    • Contact us
    • Privacy policy
    • Terms and services

    Type above and press Enter to search. Press Esc to cancel.