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GDP Implicit Price Deflator

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GDP implicit price deflator
An economic technique used to account for inflation by comparing the current-dollar gross domestic product GDP to >constant-dollar GDP as a ratio. The ratio accounts for price changes of goods and services that make up GDP and changes in the composite of GDP.
GDP Implicit Price Deflator
A ratio of nominal GDP to real GDP expressed as a percentage. The GDP price deflator is used as a measure of the inflation rate; it does not account for price changes in commodity baskets like the Consumer Price Index. Rather, it shows changes in GDP compared with a base year in constant dollar terms.


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