Deflator |
| A factor used to convert current prices into inflation-adjusted prices, in order to make comparisons over time after factoring out the overall effects of inflation. For example, an economy might have grown by 4 per cent in one year but half of the growth could have been due to higher prices (inflation), in which case, real economic growth could be derived by deflating the total figure by the inflation rate, to give growth of 2 per cent. |
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