Enter the Nominal GDP and Real GDP into the calculator to determine the GDP Price Index. This calculator can also evaluate any of the variables given the others are known.
Gdp Price Index Formula
The following formula is used to calculate the GDP Price Index.
GPI = (NGDP/RGDP) * 100
Variables:
- GPI is the GDP Price Index
- NGDP is the Nominal GDP ($)
- RGDP is the Real GDP ($)
To calculate the GDP Price Index, divide the Nominal GDP by the Real GDP. Multiply the result by 100 to get the GDP Price Index. This index measures the level of price changes in the economy and is used to convert output measured at current prices into constant-dollar GDP.
What is a Gdp Price Index?
A GDP price index, also known as the GDP deflator, is a measure of the level of prices of all new, domestically produced, final goods and services in an economy. It is a comprehensive indicator of inflation, reflecting price changes for all goods and services produced in the economy, not just consumer goods. The GDP price index provides a broad measure of domestic price developments, including prices for businesses and government, and allows for comparisons of economic data over time by removing the effects of inflation.
