GDP Price Index

GDP Price Index
Released with the GDP, the GDP Price Index measures the change in the prices of goods and services that are included in US GDP. The GDP Price Index is an indicator for inflation calculated by comparing the current GDP to GDP in the reference year. A high or rising GDP Price Index, like other indicators of inflation, puts pressure on the Federal Reserve to raise interest rates. These rate hikes generally strengthen the dollar, as they increase the return for many dollar-denominated securities.

The GDP price index differs from other more popular inflation measures, like CPI or PCE Deflator, in that it includes all products accounted for by GDP and does not include the affects of changes in import prices. Furthermore, the report is only released quarterly and commands little market attention because of it lack of timeliness.

The headline figure is the annualized percentage change.

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