Watch | GDP surprise: What does GDP deflator have to do with it? | Business Matters
The HinduK. Bharat Kumar
Watch | GDP surprise: What does GDP deflator have to do with it? | Business Matters
Explore the surprising 8.2% GDP growth and its connection to inflation and the GDP deflator in this insightful analysis.
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In this question, you will examine the relationship between movements in the inflation rate and the interest rate. Calculate the inflation rate as the growth rate in your CPI or GDP Deflator series using the formula: πt = (Pt - Pt-1) / Pt-1, where πt is the inflation rate in year t and P refers to your CPI or GDP Deflator. Note that you will not have an observation for inflation for the first year of your sample. GDP Deflator:1970: 0.09609839261971: 0.10648413111972: 0.12029758311973: 0.144550
In this question, you will examine the relationship between movements in the inflation rate and the interest rate. Calculate the inflation rate as the growth rate in your CPI or GDP Deflator series using the formula: πt = (Pt - Pt-1) / Pt-1, where πt is the inflation rate in year t and P refers to your CPI or GDP Deflator. Note that you will not have an observation for inflation for the first year of your sample. GDP Deflator:1970: 0.09609839261971: 0.10648413111972: 0.12029758311973: 0.144550
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