GDP Price Deflator

An economic metric that accounts for inflation by converting output measured at current prices into constant-dollar GDP. The GDP deflator shows how much a change in the base year's GDP relies upon changes in the price level. Also known as the "GDP implicit price deflator".

Because it isn't based on a fixed basket of goods and services, the GDP deflator has an advantage over the Consumer Price Index. Changes in consumption patterns or the introduction of new goods and services are automatically reflected in the deflator.


Investment dictionary. . 2012.

Look at other dictionaries:

  • 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… …   Financial and business terms

  • Gross domestic product (GDP) implicit price deflator —   The implicit price deflator, published by the U.S. Department of Commerce, Bureau of Economic Analysis, is used to convert nominal figures to real figures.   U.S. Dept. of Energy, Energy Information Administration s Energy Glossary …   Energy terms

  • GDP deflator — In economics, the GDP deflator (implicit price deflator for GDP) is a measure of the change in prices of all new, domestically produced, final goods and services in an economy. GDP stands for gross domestic product, the total value of all final… …   Wikipedia

  • Deflator — For GDP deflator, see GDP Deflator. In statistics, a deflator is a value that allows data to be measured over time in terms of some base period, usually through a price index, in order to distinguish between a changes in the money value of a… …   Wikipedia

  • deflator — A statistical factor used to convert current dollar purchasing power into inflation adjusted purchasing power. Enables the comparison of prices while accounting for inflation in two different time periods. Bloomberg Financial Dictionary * * *… …   Financial and business terms

  • Price index — A price index (plural: “price indices” or “price indexes”) is a normalized average (typically a weighted average) of prices for a given class of goods or services in a given region, during a given interval of time. It is a statistic designed to… …   Wikipedia

  • price index — an index of the changes in the prices of goods and services, based on the prices of the same goods and services at a period arbitrarily selected as a base, usually expressed as 100. [1885 90] * * * Measure of change in a set of prices, consisting …   Universalium

  • GDP Deflator —    A price index applied to the cash or nominal estimates of gross domestic product in order to produce a more accurate or real value of GDP. Deflators remove the effects of inflation, which boosts the nominal value of GDP but does not change the …   Financial and business terms

  • United States Consumer Price Index — The U.S. Consumer Price Index is a time series measure of the price level of consumer goods and services. The Bureau of Labor Statistics, which started the statistic in 1919, publishes the CPI on a monthly basis. The CPI is calculated by… …   Wikipedia

  • Personal consumption expenditures price index — The PCE price index (PCEPI) (or PCE deflator, PCE price deflator, Implicit Price Deflator for Personal Consumption Expenditures (IPD for PCE) (by the BEA), Chain type Price Index for Personal Consumption Expenditures (CTPIPCE) (by the FOMC )) is… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.