In their simplest form PPPs are price relatives that show the ratio of the prices in national currencies of the same good or service in different countries. Countries are required to carry out price surveys and provide price input data for household consumption, individual government consumption, collective consumption and gross fixed capital formation (investment goods and services).

For consumer (market) goods and services, special price surveys are carried out. The product sample is determined in collaboration among the participant countries, the OECD and Eurostat. The final product sample should consist of comparable goods and services and, to the largest extent possible, be equally representative of the expenditure patterns of all participant countries. Subsequently, the data collection is carried out by the NSIs. Prices are collected from a variety of outlets (markets, corner shops, supermarkets, specialist shops, departmental stores, service establishments, etc.), usually by actually visiting the shops, but also via questionnaires and phone or electronic surveys. In most countries, prices are collected only in the capital city and its surroundings. In order to obtain national average prices, these countries have to supply spatial adjustment factors for all basic headings.

For customised data you may choose: Analytical categories for purchasing power parities (PPPs) calculation: Alcoholic beverages, tobacco and narcotics