The deflator of the gross national product (GNP) is an economic indicator that takes into account the impact of inflation on the GNP of the current year.
The GNP deflator is an alternative to the consumer price index (CPI) and can be used in conjunction with it to analyze some of the changes in trade flows and their impact on the well-being of people in a country with a relatively open market.
The higher the GNP deflator, the higher the inflation rate for the period.