The Q1 GDP figures display a clear disparity between the nominal figures, which show a healthy 1.3% rise in the first three months, and the real figures, which imply that output stagnated over the same period. The disparity was caused by a sharp increase in the GDP deflator. Given that this shows prices increasing by much more than the standard RPIX inflation figures or the increase in the domestic expenditure deflator, this increase may look implausibly high. Much hangs on which of the two GDP measures is giving the more accurate picture of the economy.
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