Measures of Inflation
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Measures of inflation Gdp deflator : ratio between the gdp at current prices and gdp at constant prices Gdp deflator = gdp( current )/ gdp (constant ) Acclaimed to be a better measure of price behaviour because it covers all goods and services produced in the country [weight of services has not been equitably accounted in the Indian “headline inflation “ ie . inflation at WPI ] wpi does not include services equitably
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Transcript of Measures of Inflation
Measures of inflation
Measures of inflation
Gdp deflator : ratio between the gdp at current prices and gdp at constant prices
Gdp deflator = gdp( current )/ gdp (constant )
Acclaimed to be a better measure of price behaviour because it covers all goods and services produced in the country [weight of services has not been equitably accounted in the Indian headline inflation ie . inflation at WPI ] wpi does not include services equitably