Definition: Price level index
Purchasing power parities
PLIs are the ratios of PPPs (Purchasing power parities) to exchange rates. They provide a measure of the differences in price levels between countries by indicating for a given aggregation level or analytical category the number of units of the common currency needed to buy the same volume of the aggregation level or analytical category in each country. At the level of GDP (Gross domestic product) they provide a measure of the differences in the general price levels of countries.
Eurostat, Organization for Economic Cooperation and Development (OECD), "Eurostat-OECD Methodological Manual on Purchasing Power Parities", Publications Office of the European Union, Luxembourg, 2012