The World Price Index

The World Price Index (WPI) is a monthly index of PPP exchange rates against the US Dollar across the world’s 10 largest economies. Taking inspiration from and building on the concept of the Economist’s ‘Big Mac Index’, the WPI allows for a more timely method of making economic comparisons across countries. By drawing direct comparisons between average price levels of similar goods across countries, the World Price Index circumvents the difficulties and unreliability of using spot exchange rates or existing PPPs, which are already out of date by the time of release. 

To be published monthly, the World Price Index (WPI) is a regular index of international relative urban consumer prices, one value for each country, calculated initially for 10 countries to reflect the amount of local currency needed to buy the same representative basket of over 40 goods as could be bought for exactly $1 in the USA.

The World Price Index is expected to be released in April 2012.