June 25, 2020
There are many different deflators that are available. This one is for gross domestic purchases which measures prices paid by U.S. residents. It is the one measure of inflation that the Commerce Department talks about when it releases the GDP report. It is our broadest measure of inflation and contains more than 5,000 goods and services.
The gross domestic purchases deflator rose 1.7% in the first quarter after having risen 1.4% in the fourth quarter. But as the bottom has fallen out of the economy since mid-March, commodity prices have tumbled and this inflation measure is sure to decline in the second quarter.
Excluding the volatile food and energy components this index rose 1.7% in the first quarter after rising 1.6% in the fourth quarter.