Does GDP take into account of inflation?

If our GDP is 3.3% and inflation is 5.5%, does that mean we are shrinking?

Also, if inflation doesn't count food and energy while GDP count food and energy. Isn't that undercount inflation or overcount GDP?

Thanks

 

No, inflation is not included. There is a great deal of flexibility given to the government know as the GDP deflator which allows favorable GDP numbers. It can be either positive or negative to support positive GDP growth.

 

for the last time

http://en.wikipedia.org/wiki/GDP_deflator

 

Thanks for the pointer. Yea, the flexible basket thing look interesting.

 

for the really last time

http://www.shadowstats.com/