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7 results for “inflation”

Formulae (7)

r = \frac{1+n}{1+i} - 1

Return adjusted for inflation.

\pi = \dfrac{CPI_1 - CPI_0}{CPI_0}\times 100\%

The rate at which the general price level rises over time.

Real\ GDP = \dfrac{Nominal\ GDP}{Deflator}\times 100

Output adjusted for inflation, so growth reflects real production, not rising prices.

Deflator = \dfrac{Nominal\ GDP}{Real\ GDP}\times 100

A broad price index covering all goods in GDP, not just a consumer basket.

i \approx r + \pi

Relates nominal interest rates to the real rate plus expected inflation.

\pi = \frac{CPI_1 - CPI_0}{CPI_0}\times 100

Percentage change in the price index.

Real = \frac{Nominal}{Deflator}\times 100

GDP adjusted for inflation.