acemaxx
The key question is whether the collapse in the GDP #deflator signals a temporary return to lower inflation (#disinflation) or a potential slide into #deflation - If prices stabilize after the shock, the inflation outlook may improve. Yet @ECB ‘s obsession with monetary austerity remains x-factor.
#China —- An ongoing negative GDP #deflator means that the general price level in the economy is decreasing over time, indicating #deflation - chart @economics https://www.bloomberg.com/news/articles/2024-09-07/ecb-is-poised-to-cut-rates-again-in-warm-up-act-for-the-fed?srnd=phx-markets
#China is facing the challenge of #deflation - Its GDP #deflator (the broadest measure of prices taking in all goods and services of a country) is at minus 1.4% and has contracted for 2 consecutive quarters, chart Chetan Ahya @MorganStanley op-ed @FT https://www.ft.com/content/925e1ab5-dbf9-4c38-adaf-f4ffa44998c9
Using GDP #deflator - a measure of economy-wide prices - #China is already in #deflation ... #IMF defines #deflation as “a sustained decline in an aggregate measure of prices,” such as CPI or the GDP deflator, chart @YahooFinance https://tinyurl.com/mr8da94y
@BertieFigueres
While #inflation measures the change in prices over time (based on a particular consumer basket), the #deflator provides a measure of the overall price level relative to a base year or period.
While #inflation measures the change in prices over time (based on a particular consumer basket), the #deflator provides a measure of the overall price level relative to a base year or period.
#China - GDP #deflator is calculated by dividing #nom GDP by #real GDP (which is the GDP adjusted for inflation) and then multiplying the result by 100. It serves as an indicator of #inflation or #deflation within an economy, chart @BloombergTV
( humongous #profits and euro area #inflation ) The contribution from #UnitProfits has been particularly large over the last 3 Qs, accounting for roughly 60% of total growth in the GDP #deflator - chart @ECB https://shorturl.at/vzD34
How have unit profits contributed to the recent strengthening of euro area domestic price pressures?
The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.
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