Is the official growth rate adjusted for inflation?

Question

I see a lot of reports these days talking only about "growth rate" when refering to the economy. Do we have to assume that they already included inflation to calculate those rates or not? Please someone should enlighten me

Answer 1

Most of the GDP growth rates you see reported in the news are real. That is, they have adjusted it to remove the portion of growth that is just inflation.

Answer 2

GDP is reported both nominally and inflation adjusted. Real GDP is a more accurate measure of growth over longer periods of time. keep in mind that the deflator used is critical. The CPI probably exaggerates inflation by .5-.8 % because it doesn't take into account quality changes in products -- e.g. when a computer gets bigger and faster the CPI ignores those changes.