How is the DEFLATOR variable constructed?
DEFLATOR is a variable that is used to adjust for price changes over time in different states. Deflators for rural areas are based on CPI for Agricultural Wage Labour, deflators for urban areas are based on CPI for Industrial Workers. For interviews that took place before July 2012, it refers to ratio of CPI-AL and CPI-IW 2011-12 to those for 2004-05; for interviews that took place after July 2012, it is the ratio of July-December CPI-AL and CPI-IW to June-May 2004-05 CPI-AL and CPI-IW respectively.
To convert 2004-5 prices to 2011-12, divide by DEFLATOR.