GDP Deflator The gdp deflator measures the current level of prices relative to the level of prices in the base year It tells us the rise in nominal gdp that is attributable to a rise in prices rather than a rise in the quantities producedGDP Deflator The GDP deflator measures the current level of prices relative to the level of prices in the base year. It tells us the rise in nominal GDP that is attributable to a rise in prices rather than a rise in the quantities produced