Deflator

noun

/dɪˈfleɪtər/

A statistical tool used to convert nominal (current price) values to real (constant price) values by removing the effect of price changes. The GDP Deflator = (Nominal GDP / Real GDP) × 100. Unlike CPI or WPI, the GDP Deflator is an implicit index covering all goods and services produced in the economy, not a fixed basket.

✍️ Usage in a UPSC answer

In assessing whether the headline growth figures reflect genuine expansion or merely rising prices, the Economic Survey rightly emphasises the GDP deflator, since a nominal surge that survives deflation into real terms is the only credible signal of improving welfare.

Synonyms

price indexdeflation factorconversion factorprice-level adjusterindex number

Antonyms

inflatorescalator

🌱 Word Family

deflate (v), deflation (n), deflationary (adj), deflated (adj), deflationist (n)

🔡 Root

Latin dē- = away, down + flāre = to blow; English deflate + -or = agent suffix

📜 Etymology

From English deflate (from Latin dē- "from, away" + flāre "to blow") + -or (agent suffix) — one that deflates or removes the inflation component.

🧠 Memory Hook

A deflator "lets the air out" of inflated numbers — like deflating a balloon, it strips the puffed-up price effect to leave the real, true-size figure.

💰 Indian Economy 📖 Seen in: National Income & Economic Indicators ...

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