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COMPARATIVE PRICE LEVELS

Statistics Directorate    
Definition:
Comparative price levels are defined as the ratios of purchasing power parities (PPPs) to exchange rates.

Context:
They provide a measure of the differences in price levels between countries by indicating for a given product group the number of units of the common currency needed to buy the same volume of the product group in each country.

For example, in 1999, a given volume of gross domestic product (GDP) costs on average 106 dollars in the United Kingdom, 68 dollars in Portugal and 143 dollars in Japan. In other words, the general price level of Japan is higher than that of the United Kingdom and of Portugal.

Source Publication:
Purchasing power parities – measurement and uses, P. Schreyer, F. Koechlin, OECD Statistics Brief, March 2002, No. 3, page 7.

Statistical Theme: Prices and purchasing power partities

Created on Thursday, May 02, 2002

Last updated on Friday, April 12, 2013