Economy / Argentina
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New CPI Index, Same Problems
June 2008 | Market StrategySorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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The discrepancy in inflation reporting is illustrated nicely in the chart below. The GDP deflator - the difference between the real and nominal GDP - should provide an accurate measure of the price change in all new, domestically produced, final goods and services in the economy. While this is a much broader-based metric of price change than headline inflation (the consumer price basket, for instance, is weighted heavily in favour of food and transport costs), in practice, the difference between both metrics is relatively minor.