<p>No, a deflator greater than 100 means that the price level is higher than in the base year. It doesn't mean that inflation is still occurring. In fact, you could be <strong>experiencing deflation</strong> after a period of inflation and if prices today are still higher than the base year, have the deflator be above 100. A growing deflator is an indication of inflation. To detect inflation acceleration you'd need to see changes in the log(deflator) growing over time. </p>

CC BY-SA 3.0
2015-04-22T20:36:31.533Z
2015-04-23T00:23:03.733Z
2015-04-23T00:23:03.733Z
BKay
<p>If a GDP deflator is continually greater than 100%, does that mean inflation is still occuring?</p>

<p>If the difference in deflators from year to year is continually greater than 1%, does that mean inflation is occuring at a greater and greater rate? </p>

<gdp><inflation>
If a GDP deflator is continually greater than 100%, does that mean inflation is still occuring?
LazerSharks
# If a GDP deflator is continually greater than 100%, does that mean inflation is still occuring?

(Asked by: username_0 on 2015-04-19)

If a GDP deflator is continually greater than 100%, does that mean inflation is still occuring?

If the difference in deflators from year to year is continually greater than 1%, does that mean inflation is occuring at a greater and greater rate?

**Tags:** gdp, inflation

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## 1 answers

### Answer by username_1 on 2015-04-22. Score: 4 | Accepted answer

No, a deflator greater than 100 means that the price level is higher than in the base year. It doesn't mean that inflation is still occurring. In fact, you could be **experiencing deflation** after a period of inflation and if prices today are still higher than the base year, have the deflator be above 100. A growing deflator is an indication of inflation. To detect inflation acceleration you'd need to see changes in the log(deflator) growing over time.


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