Deflator


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Related to Deflator: GDP deflator

Deflator

A statistical factor used to convert current dollar purchasing power into inflation-adjusted purchasing power. Enables the comparison of prices while accounting for inflation in two different time periods.

Deflator

A mathematical tool used to adjust for inflation when comparing two prices from two different periods of time. One uses a deflator when one seeks to determine whether or not prices are rising in real terms.
References in periodicals archive ?
0 percent for one-year ahead PCE deflator, for example), it would be much better to generate probabilities of each inflation scenario (for instance, 55 percent chance of inflation, 30 percent chance of deflation, and 15 percent chances of price stability).
Beyond these traditional types of software, new and rapidly growing types of software--like Apps for mobile devices--also need to have accurate deflators developed.
Using survey data for the United States, Davis and Kanago (2004) found a negative correlation for the deflator and real GDP; but, like Den Haan, they found a positive correlation between the CPI and the IP.
The GDP deflator is the next-easier to predict and, again, the CPI proves most difficult.
In 1995-1996 the GDP deflator was significantly lower than the CPI because the surprise inflation was not compensated for in the public sector; therefore the deflator of government final expenditures increased only moderately.
Table 1 presents the 2002:4 weights for the core PCE deflator and some of its major components.
First, as alluded to above, this article focuses on modeling the dynamics of the state-price deflator.
There is somewhat less evidence against the model when we use the GDP and CPI deflator based measures of inflation.
The following methods are not acceptable: (1) use of the prior year's cumulative deflator index to value the current year's increment, assuming there is no inflation at the beginning of the current year or (2) use of a method that estimates the earliest acquisitions cost based on inventory turns.
But even though the so-called GDP deflator - which measures changes in the prices of domestically produced goods - jumped to a 1.
The paper develops a sectoral approach to the analysis of New Zealand's historical health expenditure statistics, establishing the feasibility of developing an implicit health-sector price deflator.
The contract would require taxpayers to use a gross domestic product deflator that is published quarterly.