. The CPI differs from the GDP deflator in that the CPI is a price index, while the GDP deflator is an inflation index firms show up in the CPI but not in the GDP deflator increases in the prices of foreign produced capital goods that are sold to U.S.
The Measures price movements in products and services bought out of glove compartment by urban consumers, where as GDP price index and underlying price deflator measure price changes in goods and services bought by purchasers, businesses, government, and foreigners, but not importers. The CPI includes widely used products, whereas the GDP price index includes all goods and services. The CPI does not account for all goods and services. CPI measurements are based on a fixed basket of goods.
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