Prisniveau

Prisniveau, or price level, is the average level of prices for goods and services in an economy at a given time. It serves as a benchmark for assessing the purchasing power of money and for comparing prices across different periods or countries. A stable price level helps households and firms plan for the future and supports predictable economic activity.

Price level is typically measured with price indices. Common examples include the consumer price index (CPI), which tracks changes in the cost of a representative basket of goods and services purchased by households; the GDP deflator, which reflects price changes for all domestically produced goods and services; and the PCE price index, used in some economies for policy assessment. These indices combine price changes across categories with weights reflecting relative importance. The price level can be converted from nominal to real terms by deflating nominal values with a price index.

The rate of change in the price level is inflation (or deflation when negative). Inflation erodes purchasing power and can influence real wages, interest rates, and investment. Central banks often pursue a policy of price level stability or a low, predictable inflation target to foster economic planning and growth. External factors such as exchange rate movements, commodity prices, and global demand shocks can also affect the price level.

Internationally, differences in price levels relate to purchasing power parity and influence real exchange rates and competitiveness. Tracking the price level is central to macroeconomic analysis, monetary policy, and economic planning.