Comparative price levels in Europe
Comparative price level indices
Comparative price level indices (PLIs) are calculated
for each country as the ratio of the purchasing power
parity (PPP) and the exchange rate (XR) in relation
to another country (base country) or to the average of a group of countries
(e.g. EU-27; Euro area-19) and thus enable a comparison of the price
levels of the individual countries. If the PLI is greater than 100,
the country concerned is more expensive in relative terms than the base
country (or group of countries); if the PLI is less than 100, the country
in question is relatively “cheaper” than the base country (or group
of countries).
PLIs are presented either in the context of the gross
domestic product (GDP), one of its sub-aggregates – first of all, final consumption
expenditure of private households (HFCE) – or individual product
groups. PLIs permit general statements as to how “expensive” or
“cheap” one country is in relation to a base country/group of countries,
but due to their statistical instability, they should not be used to
draw up stringent country rankings. Rather, it is advisable to compile
country clusters with comparable price levels.
Price convergence between EU member states
This indicator for a group of countries (e.g. EU-27;
Euro area-19) is defined as the variation coefficient (VC) of the comparative
price levels of private consumption expenditure including indirect taxes
and depicts the convergence of price levels in the EU. The higher the
value, the greater is the degree of price variance between the countries.
Price convergence/price divergence over time is derived from the time–series
of variation coefficients of the PLI. If the VC of the price level indices
for the EU decreases (increases) over time, the national price levels
in the member states are converging (diverging).
Comparative price levels – data
As a member of the European Union, Austria – through
Statistics Austria – participates in the European Comparison Programme
(ECP), in which Eurostat collaborates closely with the OECD. As a result,
the regular publication of PPP-based data and thus of up-to-date tables
concerning comparative price levels is the responsibility of these international
organisations. An overview of currently available data is provided below:
- EUROSTAT
- Comparative price
levels of final consumption by private households including indirect
taxes (EU-27_2020 = 100)
- Price convergence
between EU Member States
- Comparative price
levels for food, beverages and tobacco (2019) in:
Statistics Explained, June 2020
- Comparative price
levels for consumer goods and services (2019) in:
Statistics Explained, June 2020
- OECD
- Comparative Price
Levels: monthly updated figures for all 37 OECD countries
- Statistics Austria
- Statistical Yearbook
2020 – Ch. 47, Tab. 47.03:
– Gross domestic product per capita to purchasing power parities (PPPs)
and exchange rates (XR) in 2017 and 2018 and relative price level indices
in 2018 (Austria = 100) (available in German only)
- Tourism parities
– The Austrian Euro abroad
© STATISTICS AUSTRIA,
Last Changed 29.06.2020