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Convert nominal values to real values

Source: R/harmonise.R
deflate.Rd

Divides by a price index and rescales so that values are expressed in prices of base_year.

Usage

deflate(
  x,
  price_index,
  years = NULL,
  base_year = NULL,
  index_years = years,
  index_values = price_index
)

Arguments

x

Numeric vector of nominal values.

price_index

Price index for the same observations as x (for example the BEA GDP deflator, 2017 = 100).

years

Optional years of the observations; needed with base_year.

base_year

Year whose prices the result is expressed in. If NULL, the index is assumed to equal 100 in the base year and the result is x * 100 / price_index.

index_years, index_values

Optional full index series used to look up the base-year value when base_year is not among years.

Value

Numeric vector of real values.

Examples

# $10 in 2010 and $12 in 2020 with deflator 90 and 110 (2017 = 100)
deflate(c(10, 12), c(90, 110))
#> [1] 11.11111 10.90909
# Expressed in 2020 prices instead
deflate(c(10, 12), c(90, 110), years = c(2010, 2020), base_year = 2020)
#> [1] 12.22222 12.00000