What Is the GDP Deflator? Definition, Formula, and How It Differs from CPI
The GDP deflator, also called the implicit price deflator, measures price changes for all new, domestically produced final goods and services. It is calculated as the ratio of nominal GDP to real GDP, multiplied by 100. Unlike the Consumer Price Index, it uses a changing basket, includes exports, and excludes imports. The U.S. Bureau of Economic Analysis publishes it quarterly and annually.
