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The Consumer Price Index (CPI) and the gross domestic product (GDP) price index and implicit price deflator are measures of inflation in the U.S. economy. The CPI measures price changes in goods and services purchased out of pocket by urban consumers, whereas the GDP price index and implicit price deflator measure price changes in goods and services purchased by consumers, businesses, government, and foreigners, but not importers. Thus, which one to use in a given scenario depends on one’s purpose.

Comparing the Consumer Price Index with the gross domestic product price index and gross domestic product implicit price deflator