 |
|
home | news | site index |
|
1. User's GuideThis page has useful, general information on the GDP deflator series.
What is the GDP deflator? The GDP deflator can be viewed as a measure of general inflation
in the domestic economy. Inflation can be described as a measure of
price changes over time. The deflator is usually expressed in terms
of an index, i.e. a time series of index numbers. Percentage
changes on the previous year are also shown. The GDP deflator reflects
movements of hundreds of separate deflators for the individual expenditure
components of GDP. These components include expenditure on such items
as bread, investment in computers, imports of aircraft, and exports
of consultancy services. Uses of the GDP deflator series The series allows for the effects of changes in price (inflation)
to be removed from a time series, i.e. it allows the change in the
volume of goods and services to be measured. The resultant series
can be used to express a given time series or data set in real
terms, i.e. by removing price changes. Where do the figures come from? A series for the GDP deflator in index form is produced by the Treasury
from data provided by the Office for National Statistics (ONS). This
series is extended to future years by applying Treasury forecasts
of the inflation rate. These forecasts are usually updated around
the time of major policy announcements such as the Budget. Please
note that future years forecasts can be used in exactly the same way
as the historical series. Rounding Convention GDP deflators for earlier years (up to and including the most recent
year for which full quarterly data have been published) is disseminated
to three decimal places. Percentage year-on-year changes are given
to two decimal places. Treasury forecasts of inflation are given to
the nearest quarter of a percentage point Updates The GDP deflator set is updated after every ONS Quarterly National
Accounts release (at the end of each quarter) or whenever Treasury
updates it's forecasts (usually once or twice a year). Circulation The deflator set is circulated to everyone on the Treasury's mailing list. To be placed on this list simply e-mail the contact address given. Anyone needing electronic copies in spreadsheet format can also e-mail the contact address. Return to Table of Contents Last Updated June 22, 1999 by Russell Coleman |
© Crown Copyright | home |