GDP deflator

Definition

The GDP deflator is a measure of the overall price level in an economy. It compares the current prices of all goods and services produced to a base year, allowing us to see how much inflation or deflation has occurred.

Related terms

Consumer Price Index (CPI): A measure that specifically focuses on changes in prices for goods and services purchased by consumers.

Producer Price Index (PPI): A measure that tracks changes in prices at various stages of production, from raw materials to finished products.

Inflation: The general increase in prices over time, leading to a decrease in purchasing power.