I was just currious how inflation effects the GDP and GNI per capita of the USA. I took the data from The World Bank, and the CPI data from the Bureau of Labor Statistics. I then adjusted the GDP and GNI data for inflation by using the CPI.
The methods for determining CPI have often been crticized. Some believe CPI overestimates inflation, while others believe CPI underestimates inflation. I was currious to see how an overestimating/underestimating CPI has on the adjusted GDP per capita. So I made plots of GDP per capita with 0.5%, 1.0%, and 2.0% overestimation and underestimation of CPI each year.
View the results in the /images directory.
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