## Inflation Index: How GDP Deflator Is Calculated and Applied
The GDP deflator is a key macroeconomic indicator that allows the separation of nominal economic growth into two components: changes in the prices of goods and services and real production growth. This index, also known as the implicit price deflator, reflects inflationary processes in the country and helps analysts and investors better understand the dynamics of economic development.
### Formula and calculation principle
The GDP deflator is calculated as the ratio of nominal GDP to real GDP, multiplied by 100:
_GDP Deflator = (nom
View OriginalThe GDP deflator is a key macroeconomic indicator that allows the separation of nominal economic growth into two components: changes in the prices of goods and services and real production growth. This index, also known as the implicit price deflator, reflects inflationary processes in the country and helps analysts and investors better understand the dynamics of economic development.
### Formula and calculation principle
The GDP deflator is calculated as the ratio of nominal GDP to real GDP, multiplied by 100:
_GDP Deflator = (nom