Editing Purchasing power parity (section)

===Professional===
{{See also|List of countries by price level}}

====OECD comparative price levels====
Each month, the [[Organisation for Economic Co-operation and Development]] (OECD) measures the differences in price levels between its member countries by calculating the ratios of PPPs for [[household final consumption expenditure|private final consumption expenditure]] to exchange rates. The OECD table below indicates the number of US dollars needed in each of the countries listed to buy the same representative basket of consumer goods and services that would cost US$100 in the United States.

According to the table, an American living or travelling in Switzerland on an income denominated in US dollars would find that country to be the most expensive of the group, having to spend 27% more US dollars to maintain a standard of living comparable to the US in terms of [[Consumption (economics)|consumption]].
{{table alignment}}
{| class="sortable wikitable col2right col3right"
|-
! Country
!  Price level 2015 <br>(US = 100)<ref>as of 14 Apr 2015 {{cite web |url=http://stats.oecd.org/Index.aspx?DataSetCode=CPL |publisher=OECD |date=14 April 2015 |title=Monthly comparative price levels}}</ref>
!  Price level 2024 <br>(US = 100)<ref>as of 25 May 2024 {{cite web |url=https://data-explorer.oecd.org/vis?tm=Monthly%2520comparative%2520price%2520levels&pg=0&snb=3&df%5Bds%5D=dsDisseminateFinalDMZ&df%5Bid%5D=DSD_PPP_M%2540DF_PP_CPL_M&df%5Bag%5D=OECD.SDD.TPS&df%5Bvs%5D=1.0&lo=1&lom=LASTNPERIODS&dq=.M....&ly%5Brw%5D=REF_AREA&ly%5Bcl%5D=COUNTERPART_AREA%252CCURRENCY&to%5BTIME_PERIOD%5D=false&vw=tb |publisher=OECD |date=May 2024 |title=Monthly comparative price levels}}</ref>
|-
| Australia || 123
|96
|-
| Austria || 99
|82
|-
| Belgium || 101
|84
|-
| Canada || 105
|90
|-
| Chile || 67
|52
|-
|Colombia
|{{n/a|*}}No Data
|44
|-
|Costa Rica 
|{{n/a|*}}No Data
|67
|-
| Czech Republic || 59
|63
|-
| Denmark || 128
|105
|-
| Estonia || 71
|74
|-
| Finland || 113
|92
|-
| France || 100
|80
|-
| Germany || 94
|80
|-
| Greece || 78
|63
|-
| Hungary || 52
|55
|-
| Iceland || 111
|119
|-
| Ireland || 109
|104
|-
| Israel || 109
|105
|-
| Italy || 94
|73
|-
| Japan || 96
|69
|-
| South Korea || 84
|69
|-
|Latvia
|{{n/a|No Data}}
|64
|-
|Lithuania
|{{n/a|No Data}}
|59
|-
| Luxembourg || 112
|98
|-
| Mexico || 66
|65
|-
| Netherlands || 102
|84
|-
| New Zealand || 118
|93
|-
| Norway || 134
|92
|-
| Poland || 51
|51
|-
| Portugal || 73
|64
|-
| Slovakia || 63
|66
|-
| Slovenia || 75
|66
|-
| Spain || 84
|69
|-
| Sweden || 109
|87
|-
| Switzerland || 162
|127
|-
| Turkey || 61
|31
|-
| United Kingdom || 121
|95
|-
| United States || 100
|100
|}

=====Extrapolating PPP rates=====

Since global PPP estimates—such as those provided by the ICP—are not calculated annually, but for a single year, PPP exchange rates for years other than the benchmark year need to be extrapolated.<ref>{{cite journal |url=http://www.oecd.org/std/prices-ppp/2078177.pdf |title=Purchasing power parities – measurement and uses |author1=Paul Schreyer |author2=Francette Koechlin |date=March 2002 |number=3 |journal=Statistics Brief |publisher=OECD}}</ref> One way of doing this is by using the country's [[GDP deflator]]. To calculate a country's PPP exchange rate in Geary–Khamis dollars for a particular year, the calculation proceeds in the following manner:<ref>{{cite web|url=http://siteresources.worldbank.org/ICPINT/Resources/270056-1255977254560/6483625-1291755426408/18_ICPBook_Extrapolating_FINAL.pdf|title=Chapter 18: Extrapolating PPPs and Comparing ICP Benchmark Results|publisher=[[World Bank]]|work=[[International Comparison Program]]|author=Paul McCarthy|page=29}}</ref>

:<math>\textrm{PPPrate}_{X,i}=\frac{\textrm{PPPrate}_{X,b}\cdot \frac{\textrm{GDPdef}_{X,i}}{\textrm{GDPdef}_{X,b}}}{\textrm{PPPrate}_{U,b}\cdot \frac{\textrm{GDPdef}_{U,i}}{\textrm{GDPdef}_{U,b}}}</math>

Where PPPrate<sub>X,i</sub> is the PPP exchange rate of country X for year i, PPPrate<sub>X,b</sub> is the PPP exchange rate of country X for the benchmark year, PPPrate<sub>U,b</sub> is the PPP exchange rate of the [[United States]] (US) for the benchmark year (equal to 1), GDPdef<sub>X,i</sub> is the GDP deflator of country X for year i, GDPdef<sub>X,b</sub> is the GDP deflator of country X for the benchmark year, GDPdef<sub>U,i</sub> is the GDP deflator of the US for year i, and GDPdef<sub>U,b</sub> is the GDP deflator of the US for the benchmark year.

==== UBS ====

The bank UBS produces its "Prices and Earnings" report every three years.  The [https://web.archive.org/web/20190826165806/http://81.47.175.201/ETMS/rankings/2012_UBS_Prices_earnings.pdf 2012 report] says, "Our reference basket of goods is based on European consumer habits and includes 122 positions".<ref>{{cite web |title=Prices and Earnings (Edition 2012) |url=http://81.47.175.201/ETMS/rankings/2012_UBS_Prices_earnings.pdf |publisher=UBS |access-date=26 August 2019 |archive-url=https://web.archive.org/web/20190826165806/http://81.47.175.201/ETMS/rankings/2012_UBS_Prices_earnings.pdf |archive-date=26 August 2019 |url-status=dead }}</ref>