GDPdeflaator
The GDP deflator is a key economic indicator used to measure inflation within an economy. It is calculated as the ratio of nominal Gross Domestic Product (GDP) to real GDP, multiplied by 100. Nominal GDP represents the total value of all goods and services produced in an economy at current prices, while real GDP adjusts for inflation and reflects the value at constant prices.
The formula for the GDP deflator is: GDP Deflator = (Nominal GDP / Real GDP) * 100. A GDP
The GDP deflator is a broader measure of inflation than the Consumer Price Index (CPI) because it