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The World Price Index is calculated monthly from a basket of internationally comparable goods and services. It is designed to alleviate the horrendous problems associated with analysing economic or market data using currency market exchange rates.

To illustrate the problem:
"Imagine that over the last 4 years the US economy has shrunk by 30% and the Chinese economy grown at 2% not 10%. Imagine house prices in the UK have dropped 60% ...This frozen wasteland is not some alternative universe , but what reality already looks like when expressed...in the Japanese Yen"
(quoted from an FT article by Peter Tasker in 2011)

Exchange rates vary with extraordinary rapidity, frequently with little obvious link to economic reality, but fatally distorting the perception of value in markets and economies. It is vital when analysing international data, whether for market analysis purposes, or to allocate resources across the globe, to review data using an international yardstick of value. This can only be done using Puchasing Power Parities (PPP), which make allowance for the purchasing power of currencies within individual countries to make comparisons based on a standard currency, usually "international dollars".

There are various sources of PPP data, but most are of only academic interest as they are years out of date. The World Price Index is the only available index updated monthly to provide an easy way of reviewing trends or relative values of market or economic data in realistic terms.


World Price Index

The World Price Index

  MAY 2017
WPI Latest Findings
The WPI provides a monthly index of PPP exchange rates against the US Dollar across the world’s 16 largest economies.

Full WPI Report
  Full WPI Report
The full World Price Index report explaining the findings, methodology, data, purpose of PPP and comparative measures.


 

Price Indexes

Food Price Index

  MAY 2017
Food Price Index
The World Economics Food Price Index (FPI) is based on average end-user prices for a typical basket of grocery items in national currencies
Durable Goods Price Index

  MAY 2017
Durable Goods Price Index
Price Index for durable goods. e.g. Kettles and homeware.
Gasoline Price Index

  MAY 2017
Gasoline Price Index
Analysis of the average end-user prices for RON-95 Petrol in indexed from national currencies.
Hospitality Goods Price Index

  MAY 2017
Hospitality Goods Price Index
Hospitality service prices for the 15 top global economies in comparable index form.
Cost of Fun Price Index

  MAY 2017
Cost of Fun Price Index
The cost of recreational goods and services from Golf Clubs, iPads, music downloads to holiday flights.


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