In page navigation
Double deflation
Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
The estimation of net output at constant prices by revaluing both the gross output and the inputs of materials, fuel, services, etc., using appropriate index numbers, then subtracting the latter from the former. In practice the necessary price indices are often not available, and it is common to deffate net output at current prices by a single price index, usually an index of gross output. Single deflation therefore assumes that the ratio of net to gross output at constant prices remains unchanged, which may not be so if, for example, production methods change over time.
Reference: The Penguin Dictionary of Economics, 3rd edt.
More definitions
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >