YEAR NOMINAL GDP REAL GDP GDP DEFLATOR

2010 1144 1144 100

2011 1253 1186 109.53
2012 1278 1215 107.76
2013 1371 1253 112.84
2014 1484 1293 118.44
2015 1466 1330 113.38
2016 1500 1369 112.78
2017 1624 1412 118.63
2018 1725 1453 122.17
2019 1651 1483 113.63
2020 1638 1470 110.45
2021 1798 1529 122.31

THE CHANGE IN INFLATION RATE

GDP DEFL
12

10

0
2010 2011 2012 2013 2014 2015 2016 201

-2

-4

-6

-8

Changes in Inflation Rate:

In 2011, South Korea experienced relatively high inflation, with an inflation rate of 9.53% (GDP
In 2012, there was a significant decrease in the GDP Deflator inflation rate, reaching -1.62%, in
From 2013 to 2018, inflation rates, as measured by both the GDP Deflator and CPI, fluctuated b
In 2019 and 2020, both measures indicated negative inflation, with the GDP Deflator at -2.8%, w
In 2021, there was a significant decrease in prices according to the GDP Deflator, with an inflati

Difference in Inflation Rates: The primary difference between the GDP Deflator and CPI li

GDP Deflator reflects changes in the overall price level of all goods and services produced in th
CPI, on the other hand, focuses on a fixed basket of goods and services that are typically consu

Trend in South Korea: South Korea's inflation rates exhibited a degree of volatility over the yea

A period of high inflation in 2011, followed by a sharp decline in 2012.

Fluctuations in inflation from 2013 to 2018, with both measures generally remaining positive.
A couple of years of mild deflation (negative inflation) in 2019 and 2020.
A substantial decrease in prices in 2021, as per the GDP Deflator, while the CPI showed an inc
 INFLATION RATE USING GDP DEFLATOR (%) CPI
100
9.53 104
-1.62 106.3
4.71 107.7
4.96 109.9
-4.27 109.8
-0.53 110.9
5.19 113.1
2.98 114.7
-6.99 115.2
-2.8 115.8
10.74 118.7

NFLATION RATE IN SOUTH KOREA FROM 2010 - 2021 USING

GDP DEFLATOR AND CPI (%)

INFLATION RATE USING GDP DEFLATOR

INFLATION RATE USING CPI (%)

2015 2016 2017 2018 2019 2020 2021

ion rate of 9.53% (GDP Deflator) and 4% (CPI).

rate, reaching -1.62%, indicating deflation (a decrease in the average price level). The CPI also saw a de
ator and CPI, fluctuated but generally remained positive. The CPI consistently showed lower inflation com
GDP Deflator at -2.8%, while the CPI remained slightly positive.
P Deflator, with an inflation rate of -10.74%. However, the CPI recorded a relatively high inflation rate of 2

GDP Deflator and CPI lies in the basket of goods and services they measure:

d services produced in the economy. It includes not only consumer goods and services but also capital go
s that are typically consumed by households. It does not consider factors like investment and governmen

e of volatility over the years. The trend can be characterized as follows:

ly remaining positive.

e the CPI showed an increase in prices.

 INFLATION RATE USING CPI (%)

4
2.212
1.317
2.043
-0.091
1.002
1.984
1.415
0.436
0.521
2.504

- 2021 USING

NFLATION RATE USING GDP DEFLATOR (%)

NFLATION RATE USING CPI (%)

ce level). The CPI also saw a decrease but remained positive at 2.212%.
tently showed lower inflation compared to the GDP Deflator.

a relatively high inflation rate of 2.504%.

measure:

s and services but also capital goods, government spending, and net exports. Therefore, it can be more s
s like investment and government spending, which are included in the GDP Deflator.
herefore, it can be more sensitive to changes in investment, government spending, and exports.
d exports.
YEAR NOMINAL GDP ($ Billions) REAL GDP ($ Billions)
2010 1.195 1.25
2011 1.463 1.281
2012 1.553 1.331
2013 1.483 1.366
2014 1.441 1.4
2015 1.219 1.431
2016 1.232 1.471
2017 1.348 1.505
2018 1.377 1.549
2019 1.353 1.582
2020 1.363 1.544
2021 1.553 1.606

THE CHANGE IN INFLATION RATE IN A

DEFLATOR
20

15

10

0
2010 2011 2012 2013 2014 2015 2016 2017

-5

-10

-15

-20
Change in Inflation Rate:

GDP Deflator Inflation: The inflation rate using the GDP Deflator in Australia showed significant fl
CPI Inflation: CPI-based inflation exhibited less volatility. It started at 3.304% in 2011, and despite

Trend in Australia's Inflation:

High Inflation in 2011: In 2011, Australia experienced a high inflation rate, with the GDP Deflator
Deflation in 2013-2015: Australia went through a period of deflation between 2013 and 2015. The
Recovery and Moderate Inflation: From 2016 onwards, both the GDP Deflator and CPI showed
Higher Inflation in 2021: In 2021, both inflation measures experienced a significant increase, with
Overall Trend: The overall trend in Australia's inflation from 2011 to 2021 was marked by volatility

Differences in Inflation Rate Calculations:

Scope of Goods and Services: The primary difference between the two inflation rate calculations
GDP Deflator measures changes in prices for all domestically produced goods and services, includ
CPI focuses on a specific basket of goods and services that represent the typical consumption of u
Sensitivity to Investment and Government Spending: The GDP Deflator is more sensitive to ch
Consumer Behavior: CPI represents the typical spending behavior of consumers, so it is influenc
Weights and Basket: CPI uses a fixed basket of goods and services with fixed weights, which are
In summary, the significant differences in inflation rates between the GDP Deflator and CPI in Aus
 GDP DEFLATOR (%) INFLATION RATE USING GDP DEFLATOR (%)
100
114.208 14.21
116.679 2.16
108.565 -6.95
102.929 -5.19
85.185 -17.24
83.753 -1.68
89.568 6.94
88.896 -0.75
85.525 -3.79
88.277 3.22
96.700 9.54

NFLATION RATE IN AUSTRALIA FROM 2010 - 2021 USING GDP

DEFLATOR AND CPI (%)

INFLATION RATE USING GDP DEFLATOR (

INFLATION RATE USING CPI (%)

014 2015 2016 2017 2018 2019 2020 2021

n Australia showed significant fluctuations over this period. It started at a high of 14.21% in 2011, then dippe
at 3.304% in 2011, and despite minor fluctuations, it remained mostly positive, with a peak of 2.864% in 20

ion rate, with the GDP Deflator measuring 14.21% and CPI at 3.304%. This could be attributed to various fa
n between 2013 and 2015. The GDP Deflator showed negative inflation rates whereas CPI remained positiv
GDP Deflator and CPI showed a recovery in inflation rates. This could indicate a more stable economic envi
nced a significant increase, with the GDP Deflator reaching 9.54% and CPI at 2.864%. This surge in inflation
o 2021 was marked by volatility and fluctuation. It is essential to note that the country's economic performan

he two inflation rate calculations is the scope of goods and services they include:
uced goods and services, including those not just consumed by households but also by businesses and the
ent the typical consumption of urban consumers. It is a more consumer-centric measure.
Deflator is more sensitive to changes in investment and government spending because it includes these ex
or of consumers, so it is influenced by their consumption patterns and preferences. It is less impacted by cha
es with fixed weights, which are updated periodically. On the other hand, the GDP Deflator covers a changin
he GDP Deflator and CPI in Australia from 2011 to 2021 can be attributed to the varying scopes of goods an
 CPI (%) INFLATION RATE USING CPI (%)
100
103.304 3.304
105.125 1.763
107.7 2.449
110.38 2.488
112.045 1.508
113.476 1.277
115.687 1.948
117.898 1.911
119.797 1.611
120.812 0.847
124.272 2.864

USING GDP

TION RATE USING GDP DEFLATOR (%)

TION RATE USING CPI (%)
of 14.21% in 2011, then dipped into negative territory in 2013, 2014, and 2015, indicating deflation. It reboun
, with a peak of 2.864% in 2021.

uld be attributed to various factors, including strong domestic demand, rising commodity prices, and increas
whereas CPI remained positive but relatively low. The deflation was likely influenced by factors such as a slo
a more stable economic environment, with factors like monetary policy measures and recovering global dem
2.864%. This surge in inflation might be associated with various factors, including the recovery from the eco
country's economic performance is closely tied to global factors, particularly commodity prices and internatio

ut also by businesses and the government. It represents a broader view of the entire economy's price level.
c measure.
g because it includes these expenditures. When there are significant fluctuations in these sectors, it can affe
ces. It is less impacted by changes in areas like capital investment or government purchases, which are not
GDP Deflator covers a changing mix of goods and services produced in the economy and doesn't have the s
e varying scopes of goods and services considered in the two calculations. The GDP Deflator captures the
ating deflation. It rebounded in subsequent years, with a peak of 9.54% in 2021.

dity prices, and increased investment in the resource sector.

by factors such as a slowing global economy, a decline in commodity prices (which Australia heavily relies o
d recovering global demand.
recovery from the economic impact of the COVID-19 pandemic, supply chain disruptions, increased govern
ty prices and international trade. Changes in these external factors can significantly influence Australia's infl

economy's price level.

ese sectors, it can affect the GDP Deflator inflation rate, as seen in 2011, 2013, and 2017. These fluctuation
rchases, which are not directly relevant to consumers.
and doesn't have the same fixed basket concept.
P Deflator captures the entire economy and is influenced by factors like investment and government spendin
ustralia heavily relies on for exports), and efforts to reduce inflationary pressures.

ons, increased government spending, and global inflationary pressures.

fluence Australia's inflation rate. Additionally, the Reserve Bank of Australia's monetary policy decisions also

017. These fluctuations are not reflected in the CPI.

d government spending, resulting in more significant fluctuations. In contrast, the CPI is a narrower measure
y policy decisions also play a crucial role in managing inflation and economic stability.

s a narrower measure that focuses on consumer goods and is therefore less sensitive to these external facto
to these external factors.
 YEAR NOMINAL GDP REAL GDP GDP DEFLATOR
2010 3.396 3.396 100
2011 3.744 3.53 106.062
2012 3.527 3.544 99.520
2013 3.733 3.56 104.860
2014 3.884 3.639 106.733
2015 3.36 3.693 90.983
2016 3.466 3.775 91.815
2017 3.684 3.873 95.120
2018 3.973 3.923 101.275
2019 3.888 3.944 98.580
2020 3.846 3.764 102.179
2021 4.224 3.873 109.063

THE CHANGE IN INFLATION RATE IN

DEFLATOR
10

0
2010 2011 2012 2013 2014 2015 2016 2017

-5

-10

-15

-20

CHANGE IN INFLATION RATE:

The GDP deflator inflation rate fluctuated significantly over this period, ranging from -14.756% in 2
The CPI inflation rate also exhibited variation, but its range was generally narrower, with the lowes

TREND IN GERMANY 'S INFLATION:

GDP Deflator Inflation Rate:
In 2011, the GDP deflator inflation rate was relatively high at 6.062%, indicating a period of rising o
In 2012, there was a significant shift with a negative inflation rate of -6.168%, suggesting a deflatio
In the following years, the GDP deflator inflation rate showed fluctuation, but it generally remained
CPI Inflation Rate:
The CPI inflation rate, which measures changes in the cost of living for consumers, generally rema
Even during the deflationary period in 2012 for the GDP deflator, the CPI maintained positive inflat
Overall Trend:
The overall trend for Germany's inflation rates from 2011 to 2021 indicates a degree of volatility in
In contrast, the CPI inflation rate remained relatively stable over the same period, showing modera

Difference in Inflation Rate Calculations:

The difference between the GDP deflator and CPI inflation rates can be attributed to the fact that th
This difference in coverage can lead to disparities in inflation rates, as changes in the prices of item
Including:
1. Measurement Purpose:
GDP Deflator: The GDP deflator measures changes in the average price level of all goods and ser
CPI: The Consumer Price Index, on the other hand, specifically measures changes in the cost of li
2. Coverage:
GDP Deflator: It covers a broader range of goods and services, including those used in investmen
CPI: The CPI, on the other hand, is limited to a fixed basket of goods and services commonly cons
3. Composition and Weighting:
GDP Deflator: The weightings in the GDP deflator change over time based on the composition of G
CPI: The CPI uses fixed weightings that are based on the spending habits of a specific group of ur
4. Variation in Reported Inflation Rates:
Due to the differences in coverage, weighting, and composition, the inflation rates reported by the
The GDP deflator tends to report higher inflation rates compared to the CPI. This is because it incl
The CPI typically provides a more stable and consumer-focused measure of inflation.
5. Economic Implications:
Differences in inflation rates based on the GDP deflator and CPI can have implications for econom
The GDP deflator may impact economic policies related to investment, international trade, and pro
The CPI may influence consumer behavior, wage negotiations, and social benefit adjustments.
6. Volatility and Trends:
Over the years, the GDP deflator exhibited more significant fluctuations, including negative inflation
 INFLATION RATE USING GDP DEFLATOR (%) CPI
100
6.062 102.075
-6.168 104.125
5.365 105.692
1.786 106.651
-14.756 107.199
0.914 107.726
3.600 109.352
6.470 111.247
-2.661 112.855
3.650 113.018
6.737 116.484

N INFLATION RATE IN GERMANY FROM 2010 - 2021 USING GDP

DEFLATOR AND CPI (%)

2014 2015 2016 2017 2018 2019 2020 2021 INFLATION RATE USING GDP DEFLAT
INFLATION RATE USING CPI (%)
eriod, ranging from -14.756% in 2015 to 6.737% in 2021. This indicates a high degree of volatility in the ove
generally narrower, with the lowest at 0.144% in 2020 and the highest at 3.067% in 2021. This suggests tha

62%, indicating a period of rising overall price levels.

of -6.168%, suggesting a deflationary phase where the average price level for goods and services produce
ctuation, but it generally remained positive. It reached a peak in 2021 at 6.737%, indicating a return to a peri

ing for consumers, generally remained lower compared to the GDP deflator.
the CPI maintained positive inflation, indicating that the cost of living for consumers was still increasing.

1 indicates a degree of volatility in the GDP deflator inflation rate. This volatility suggests fluctuations in the c
the same period, showing moderate fluctuations and indicating that the cost of living for consumers was less

can be attributed to the fact that they measure different baskets of goods and services. The GDP deflator co
es, as changes in the prices of items not included in the CPI basket (e.g., investment goods, exports, and im

ge price level of all goods and services produced in Germany. It serves the purpose of assessing inflation in
measures changes in the cost of living for urban consumers in Germany. Its primary purpose is to evaluate h

ncluding those used in investment and those that are part of the export sector. It represents the overall price
oods and services commonly consumed by urban consumers. It includes items like food, housing, transporta

me based on the composition of GDP. Sectors with a larger share of the economy have a greater impact on
ing habits of a specific group of urban consumers. These weightings are updated periodically but remain con

the inflation rates reported by the GDP deflator and CPI for Germany are often different:
to the CPI. This is because it includes a broader range of goods and services, including those used for inve
measure of inflation.

can have implications for economic decision-making and policy:

tment, international trade, and production costs.
and social benefit adjustments.

uations, including negative inflation in 2012 and 2015, while the CPI maintained positive inflation throughout
 INFLATION RATE USING CPI (%)

2.075
2.008
1.505
0.907
0.514
0.492
1.509
1.733
1.445
0.144
3.067

0 - 2021 USING GDP

INFLATION RATE USING GDP DEFLATOR (%)

INFLATION RATE USING CPI (%)
 ates a high degree of volatility in the overall price level as it relates to the production of goods and services
est at 3.067% in 2021. This suggests that changes in the cost of living for consumers were less extreme com

ice level for goods and services produced in the economy was decreasing.
1 at 6.737%, indicating a return to a period of higher inflation.

ng for consumers was still increasing.

his volatility suggests fluctuations in the costs of production, which could be influenced by factors like change
the cost of living for consumers was less volatile compared to the overall economy.

goods and services. The GDP deflator considers all goods and services produced in the economy, including
(e.g., investment goods, exports, and imports) can have a significant impact on the GDP deflator.

rves the purpose of assessing inflation in terms of the cost of all production, including exports and investme
many. Its primary purpose is to evaluate how inflation affects the purchasing power and living standards of ho

port sector. It represents the overall price level in the entire economy.
ludes items like food, housing, transportation, and healthcare, reflecting the spending patterns of typical hou

of the economy have a greater impact on the index.

s are updated periodically but remain constant for a set period, typically a year.

ny are often different:

nd services, including those used for investment and trade, which can have different price dynamics compar

maintained positive inflation throughout the period. The CPI's inflation rates remained relatively stable com
ction of goods and services in the German economy.
mers were less extreme compared to the overall economy.

enced by factors like changes in input costs, productivity, and demand for goods and services produced with

ed in the economy, including those that may not be part of the typical consumer basket. In contrast, the CPI
the GDP deflator.

uding exports and investment goods. It is often used for macroeconomic analysis and is particularly relevant
er and living standards of households. The CPI is more relevant for assessing the impact of inflation on con

nding patterns of typical households.

rent price dynamics compared to consumer goods.

mained relatively stable compared to the GDP deflator, which experienced greater variability.
ervices produced within Germany.

. In contrast, the CPI measures the prices of a fixed basket of goods and services that are commonly consu

is particularly relevant for economic policy and assessing economic growth or recession.
act of inflation on consumers and is used for purposes such as adjusting wages, pensions, and social benef
are commonly consumed by urban consumers.

ons, and social benefits.