PIB Deflator
GDP deflator in the economy is a measure of price change for all products produced in the country, products and services. GDP means gross domestic product, the total value of goods and services produced in an economy in a given period.
GDP deflator is based on a “market basket” fix, representing goods and services. Basket size is amended in the light of human consumption and investment patterns. Thus, new patterns of expenditure deflator may arise as a response of humans to change prices.
[edit] Method of calculation
In most systems of national account, the GDP deflator measures the difference between real GDP and nominal GDP.
The formula used to calculate the deflator is nominal GDP/ real GDP
