How to calculate real GDP

Roughly speaking, to calculate real GDP, you need to "clear" nominal inflation. When calculating real GDP the base year is possible to take any year including and located chronologically before the current one. For example, for historical comparison, we can calculate the real GDP 2000 prices in 2010, in this case, the base year will be 2010.

For calculation it is necessary to know the nominal GDP of the base year. You can use the research of Rosstat (if you need data only for RF), and the IMF, the world Bank or the world book of facts CIA. To get the figure of real GDP, we need the nominal GDP divided by the General price level (calculated as a price index).

The most common price indices for calculating real GDP uses the consumer price Index (CPI), which is calculated based on the value of the products included in the market basket (average amount of goods consumed by the average family per year). In developed countries, the consumer basket includes 300-400 items of goods and services. Data on the CPI can also be found on the Rosstat website and on the websites of statistical services of the countries that interest you.

Also, in some cases when calculating real GDP can be used the producer price Index (PPI), which is calculated on the basis of data on the cost of intermediate goods (basket of goods) of raw materials. The main difference from the CPI is that this index covers only products (no services) and only at the wholesale level implementation.

So, for the calculation of real GDP, the nominal GDP is divided by the index price, among which the most commonly used PPI and CPI.