kjøpekraftskorrigerte

Kjøpekraftskorrigerte is a Norwegian term that translates to "purchasing power adjusted" or "real terms" in English. It is a method used in economics and statistics to compare economic data over time or between different regions by accounting for changes in the general price level, often referred to as inflation. When economic figures are presented in "kjøpekraftskorrigerte" terms, it means that the nominal (current) value has been adjusted using a price index to reflect the actual quantity of goods and services that can be purchased with that amount of money.

This adjustment is crucial for understanding the true growth or decline of economic indicators like wages, gross domestic product (GDP), or household income. For example, if nominal wages increase by 5% in a year, but inflation is 4%, then the "kjøpekraftskorrigerte" wage increase is only 1%. This indicates that while the amount of money received is higher, the ability to buy goods and services has only increased marginally. Similarly, when comparing GDP per capita between countries, using purchasing power parity (PPP) adjustments, which is a form of kjøpekraftskorrigering, provides a more accurate comparison of living standards than simply using exchange rates. It reflects how much can be bought in each country with the same amount of money.