Gdp is the gross domestic product, which reflects the economic growth.
Generally speaking, the CPI of countries with GDP growth will also increase in the same period.
The synchronization of the two indicators shows that the development of economic structure is reasonable. If GDP grows too fast, CPI will increase slightly, or even not, indicating that the supporting points of national economic growth are not coordinated. For example, in China, issuing government bonds, increasing exports and stimulating domestic demand are the three troikas of economic growth. However, China's failure in stimulating domestic demand has increased the contradiction with trading countries in foreign trade, hindered exports and increased the pressure of RMB appreciation.
CPI and GDP deflator basically show the same trend change, that is to say, in the case of inflation, CPI and GDP deflator will also increase, although the magnitude is slightly different. This means that during the period of inflation, the real GDP shows a downward trend, because the real CPI is negatively correlated with the GDP deflator. In other words, with the continuous rise of CPI, nominal GDP may be increasing, while real GDP is declining. The economic growth we want to pursue is of course real growth, and the so-called "economic growth" standard theory supported by nominal GDP increase based on currency depreciation cannot be established.
Secondly, under the condition of inflation, there can be no sustained and stable macroeconomic growth. Earlier, I published an article in this column entitled "Inflationary pressure drags down the stock market". The article talked about the relationship between inflation and the stock market, and also talked about the relationship between inflation and economic development, because the stock market is a barometer of economic development and represents the market's expectations for the future of economic development. If the view that "inflation drags down the stock market" has been repeatedly proved by Chinese and foreign economic history, then its essential meaning should be "inflation drags down economic growth".