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IMPLICIT PRICE INDEX BASED ON CURRENT EXCHANGE RATES (OR CURRENT INTERNATIONAL PRICES)

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Definition:
The implicit price index based on current exchange rates (or current international prices) is an aggregate price index derived as the ratio of a value index at current exchange rates (or current international prices) over a volume index at constant exchange rates (or constant international prices) of period t0.

Context:
When this price index is exchange-rate based, it reflects the shifts in exchange rates and devaluation or appreciation of individual currencies can influence the price aggregate even if domestic prices are unchanged. When the price index is PPP-based, it reflects domestic inflation of the reference country or average inflation of the reference countries.

Source Publication:
Statistical Series for the Euro Area - Conclusions and Recommendations of the OECD ASTF Euro Subgroup, 15 May 2001.

Statistical Theme: National accounts

Created on Tuesday, September 25, 2001

Last updated on Saturday, March 16, 2002