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Differences Between the GDP Deflator and CPI

Although at first glance it may seem that CPI and GDP Deflator measure the same thing, there are a few key differences.  The first is that GDP Deflator includes only domestic goods and not anything that is imported.  This is different because the CPI includes anything bought by consumers including foreign goods.  The second difference is that the GDP Deflator is a measure of the prices of all goods and services while the CPI is a measure of only goods bought by consumers. 

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