India, Sept. 2 -- The Government of India has issued a release:
IMF describes double deflation as the preferred method for calculating GDP in volume terms.
A negative inflation in implicit deflator in manufacturing does not mean that manufacturing prices have fallen. It is important to distinguish between the price deflators of output and inputs and the implicit Gross Value Added (GVA) deflator.
Year 1
Year 2
Growth Rate
Gross Value of Output
1,000 Cr
1,200 Cr
20.0%
Intermediate Consumption
800 Cr
976 Cr
22.0%
Nominal Gross Value Added (Current)
200 Cr
224 Cr
12.0%
PPI Output Index
100
110
10.0%
PPI Input Index
100
114
14.0%
Deflated Output (Constant)
1,000 Cr
1,091 Cr
9.1%
Deflated Inputs (Constant)
800 Cr...