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GDP Deflator

What is the GDP Inflator?

Written by Jason Gordon

Updated at March 17th, 2023

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What is the GDP Deflator?

GDP Deflator is a price index used to convert the stated level of GDP in an economy into real terms. This means that you are converting the current dollar value to the same dollar value at an earlier time period, so that you can compare the GDP level in dollars with the same purchasing power.

The formula for the DDP Price Deflator is as follows: 

GDP Price Deflator = (Nominal GDP ÷ Real GDP) × 100

gdp inflator economic growth gdp deflator price deflator price index

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