Deflator

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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 ?
The new deflators for computers and for office, computing, and accounting machinery were used in the revised estimates of several components of GNP, as shown in table 2.
Percentage changes in the approximate and official deflators were highly correlated over 1995-2011 ([rho] = 0.81) and nearly equal in 2009-2011, but the approximate series had lower percentage declines on average.
Except for nondurables, correlations at longer horizons are of greater magnitude; Den Haan also found this to be true for the GDP deflator and GDP and for the CPI and IP.
For the PCE deflator, these restrictions are not rejected at the 4 percent significance level.
In general, they can be expressed as: * = Y / N X D where * is real mean income; Y is aggregate income; N is number of recipients; and D is the price deflator. Differences in the growth rates of the components in both real income measures were responsible for the divergent trends in real income.
BEA has made two improvements in the use of the deflators for purchases of computers in GNP (table 3).
Corrado, Carol, Peter Goodridge, and Jonathan Haskel (2013) "Constructing a Price Deflator for R&D: Calculating the Price of Knowledge Investments as a Residual," paper presented at the UNSW Productivity Workshop, November 28-29 Sydney, Australia.
The deflator of nominal output and nominal wages that underlie labour's terms of trade are an important part of understanding the relationship between labour productivity and consumption wages.
Table: 7.5.--Implicit Price Deflators for Gross National Product by Major Type of Product
Estimates of real spending are calculated from survey data on current-dollar spending and from estimated capital goods price deflators developed by BEA.3 The capital goods deflator for "all industries' is projected by BEA to increase 1.1 percent in 1987, following a 0.6-percent increase in 1986; the deflator declined 0.4 percent in 1985.
Estimates of real spending are calculated from survey data on current-dollar spending and from estimated capital goods price deflators developed by BEA.3 The capital goods deflator for "all industries' is projected by BEA to increase 0.3 percent in 1987, following a 1.2-percent increase in 1986; the deflator increased 0.5 percent in 1985.
Table: 7.7.--Implicit Price Deflators for the Relation of Gross National Product, Nat National Product and National Income

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