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IMPLICIT PRICE INDEX BASED ON CONSTANT EXCHANGE RATES (OR CONSTANT INTERNATIONAL PRICES) OF PERIOD T0

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

Context:
This price index is suitable for statements about domestic price developments in a geographical zone. But note that in cases where the geographical zone comprises some, or even only one, high inflation country, the large domestic price changes in this economy are fully reflected in this price index and may dominate the measure to the point of rendering it meaningless.

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