GDP deflator(redirected from Implicit price deflator)
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GDP 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.
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A price index used to adjust gross domestic product for changes in prices of goods and services included in the GDP. The GDP deflator is a more broadly based and, many economists argue, a better measure of inflation than the consumer price index or the producer price index. Also called gross domestic product deflator.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.