If the price of imported French wine rises, is the CPI or the GDP deflator affected more? Why?

Here is a tip:

The CPI measures the weighted average of the price of a basket of goods and services.

Explanation

The GDP deflator reveals the price of all goods and services made domestically, and the CPI reveals the price of all goods and services bought by consumer even if they are imported. Consequently, a rise in the price of an imported wine is a part of the consumer basket and will affect the CPI index not in the GDP deflator.

Verified Answer

The CPI (Consumer Price Index) will not be greatly affected due to the price of imported French wine because the CPI accounts for only 1% of intoxicating drinks.