kjøpekraftindeks
Kjøpekraftindeks, often translated as purchasing power index, is a statistical measure used to compare the relative cost of goods and services in different locations or over different time periods. It essentially shows how much a unit of currency can buy in one place compared to another. A higher purchasing power index indicates that a given amount of money will buy more goods and services in that location. Conversely, a lower index suggests that prices are higher and the same amount of money will purchase less.
This index is crucial for understanding the real value of income and for making economic comparisons. For
The calculation of a purchasing power index typically involves comparing the prices of a representative basket