November 2017 - Quickonomics

Differences between GDP Deflator and Consumer Price Index (CPI)

Differences between the GDP Deflator and CPI

To measure changes in the overall price level in an economy, policy makers and economists monitor a number of different economic indicators. The two most important ones are the GDP deflator and the Consumer Price Index (CPI). Even though they usually show similar results, there are two important differences between […]

How to Calculate the GDP Deflator

The GDP deflator is a measure of the price level of all domestically produced final goods and services in an economy. It is sometimes also referred to as the GDP Price Deflator or the Implicit Price Deflator. The GDP deflator reflects changes in the average price level within the economy. […]