U.S. GDP Deflator vs. CPI: How Inflation Measures Differ and Why It Matters

The Consumer Price Index (CPI) and the GDP deflator are both measures of inflation, but they track different baskets and scopes. The CPI measures prices paid by urban consumers for a fixed basket including imports, while the GDP deflator measures prices of all domestic production with a changing basket. Since the early 1970s, the CPI has risen almost 30% more than the GDP deflator, a gap that matters for cost-of-living adjustments and real GDP.

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States With the Fastest Real GDP Growth in 2025

Florida and South Carolina tied for the fastest real GDP growth among U.S. states in 2025, each expanding 3.1 percent, while every state economy grew. The national economy grew 2.1 percent, but state performance ranged from 0.3 percent in North Dakota to 3.1 percent in the leaders. Sun Belt states generally outperformed the national average, while Plains and Great Lakes states lagged.

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