The GDP deflator, also known as the implicit price deflator, is a measure that shows how much the prices of all goods and services produced in a country have changed over time. It helps us understand how much of the change in GDP is due to changes in prices and how much is due to changes in production.

The GDP deflator measures the rate of inflation in an economy. By comparing the nominal GDP (which is affected by inflation) to the real GDP (which is adjusted for inflation), the GDP deflator reflects the changes in the price level.

GDP deflator = (Nominal GDP / Real GDP) x 100, where: