The growth rate of per capita income at current prices is higher than that of per capita income at constant prices, because the latter takes into account the rate of

1. Per capita income measures the average income per person in an economy. 2. Growth rate of per capita income at current prices (nominal growth) reflects the combined effect of changes in real output and changes in the price level (inflation). 3. Growth rate of per capita income at constant prices (real growth) measures the growth in income after adjusting for the effects of inflation. It reflects the actual increase in the purchasing power or volume of goods and services produced per person. 4. The reason the nominal growth rate is typically higher than the real growth rate is that the calculation at constant prices explicitly removes the effect of the increase in the price level (inflation). The calculation itself involves dividing by a price index or deflator. 5. Population growth is accounted for in both calculations (dividing total income by population), so it doesn't explain the difference between current and constant price growth rates.