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" However, as I understand, this is before adjustment for inflation, which also is high in India" . No , India’s Consumer Price Inflation Falls to Record Low of
by ahiknsr 9y ago
" However, as I understand, this is before adjustment for inflation, which also is high in India" . No , India’s Consumer Price Inflation Falls to Record Low of 2.18 Percent ( https://www.bloomberg.com/news/articles/2017-06-12/india-s-may-consumer-prices-fall-to-record-low-of-2-18-percent https://www.bloomberg.com/news/articles/2017-06-12/india-s-m...)
- alok-g 9y agoIf inflation calculation used for GDP inflation adjustment is based on CPI, there is a problem already. GDP is measured using all products and services (perhaps with some exceptions), while CPI is measured using a very small subset. For the purposes of calculating inflation-adjusted GDP, inflation should be calculated using all the products and services that count towards the GDP. In the meanwhile, the overall inflation as felt by the residents (in the cities where I am exposed to) is much higher than ~2% quoted, nearly around or even higher than the GDP growth rates mentioned. Again, being a newbie, I would like to hear back if my understanding is incorrect.