The implicit price deflator is the ratio of current dollar gross domestic product (GDP) to constant dollar GDP for state and local governments. The ratio is used to account for the effects of inflation.
Implicit Price Deflator (IPD)
Source: U.S. Department of Commerce, Bureau of Economic Analysis (BEA), January 26, 2021
The BEA routinely revises the implicit price deflator data as more complete data becomes available. The IPD has in the past been used in the calculation of levy limits for cities over 2500 population.
Implicit Price Deflator data is available at www.bea.gov in Table 1.1.9 (Implicit Price Deflators for Gross Domestic Product).