the gdp deflator is different animal from the cpi. why? there is hardly any overlap between what is produced and consumed. examples.
- 30% of gov't spending is on military. there is no inflation as prices were negotiated years back with lofty profit margins.
- 70% of the total economy is exchange of services. with the exception of the ones that use commodities inputs, the rest experience no inflation (financials, real estate, health care, etc.) their actual 'growth' might be correlated though with cpi, due to indexation.
having said all that i see the economy shrinking in real unit production and if measured in gold rather than fiat money.