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The GDP Price Index measures the changes in prices for all goods and services produced domestically, acting as a comprehensive measure of inflation. Unlike the Consumer Price Index (CPI), it includes prices of investment goods, government services, and exports, while excluding imports. It provides a holistic view of price pressures within the entire domestic production chain.
The index is calculated as the ratio of nominal GDP to real GDP, multiplied by 100. This 'GDP Deflator' reflects the price change of all components of GDP relative to a specific base year.