Which measure provides the broadest indication of a nation's inflation rate?

The implicit GDP deflator is the measure that provides the broadest indication of a nation's inflation rate because it takes into account the prices of all goods and services produced within the economy, rather than focusing on a specific subset. Unlike the consumer price index, which measures the price changes of a fixed basket of consumer goods and services, the implicit GDP deflator reflects the prices of all domestically produced goods and services. This makes it a comprehensive measure of inflation, as it captures price changes across the entire economy.

Additionally, the implicit GDP deflator adjusts for changes in consumption patterns and reflects the mix of goods and services being produced, while the CPI and PPI are limited to certain categories of goods and services. The retail price index, although it provides valuable information about consumer prices, is also narrower in scope than the implicit GDP deflator. Therefore, due to its comprehensive nature, the implicit GDP deflator serves as a more accurate gauge of overall inflation within a nation.