Prices and purchasing power parities (PPP)

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  • Inflation or Consumer price Index (CPI)?

    Inflation is a rise in the general level of prices of goods and services that households acquire for the purpose of consumption in an economy over a period of time.

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  • What are PPPs?

    PPPs are the rates of currency conversion that equalize the purchasing power of different currencies by eliminating the differences in price levels between countries. In their simplest form, PPPs are simply price relatives that show the ratio of the prices in national currencies of the same good or service in different countries.

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  • Methodological Guide for Developing Producer Price Indices for Services (SPPI)

    This second edition of the SPPI Guide is a complement to the International Producer Price Index Manual published by the IMF in 2004 in two ways: it focuses on service-specific aspects in the PPI compilation by developing further the conceptual framework and it adds detailed descriptions of PPI measurement for a wide range of individual service industries.

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Statistical Insights: Purchasing Power Parities – not only about Big Macs

International price level comparisons for different product groups
(ratio to the OECD average in 2014)

International price level comparisons for different product groups(ratio to the OECD average in 2014)‌‌‌‌‌

10/07/2017 - All travellers know that the prices of goods and services vary between countries. In order to capture these price differences, Eurostat and the OECD collect data on the prices of identical goods and services in their member countries, and compile “Purchasing Power Parities” (PPPs) – conversion rates that neutralise price differences between countries. The collection spans hundreds of products and allows PPPs to be calculated for various classes of goods and services, and for macroeconomic aggregates such as gross domestic product (GDP). PPPs help economists and other users of statistics who want to compare GDP, income and consumption across economies with a proper adjustment for price differentials, in order to better assess the size of economies, productivity and material well-being.     


 

 

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Statistical references

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