1. a statistical index or factor used to adjust nominal values (such as prices or wages) to remove the effects of inflation and express them in real terms
Usage: economics; technical
2. a device or tool that reduces air pressure or removes air from something

Examples

• Economists use a GDP deflator to convert nominal gross domestic product into real GDP.
• The price deflator helps analysts compare wages across different years by accounting for inflation.
• A deflator valve on the tire pump allows you to safely release air from an overinflated tire.
• The government publishes deflator indices monthly to track changes in the price level.
• Without applying a deflator, it's difficult to determine whether income has actually increased in real terms.