What are Chained Volume Measures (CVM)?
Chained volume measures (CVM) is a method of adjusting economic data for price changes over time, in order to make the data more comparable and easier to understand. CVM is used to adjust data from different periods for inflation, so that the data can be compared in "real" terms. This means that the data is adjusted for the effects of inflation, so that the comparison between different periods is more meaningful. For example, if we wanted to compare the GDP of a country in two different years, we could simply compare the nominal GDP figures for those years. However, this would not take into account the fact that the general level of prices may have changed between the two years. Inflation would cause the nominal GDP figures to be higher in the later year, even if the actual amount of economic activity had not increased. To correct for this, we can use CVM to adjust the GDP figures for inflation, so that we can compare the "real" GDP of the two years. This will give ...