Definition: Indirect price comparison
Purchasing power parities
A price comparison between two countries made by dividing the expenditure ratio by the volume ratio. The indirect price comparison between country A and country B for product I is (PIAQIA / PIBQIB) / QIA/QIB = PIA / PIB where the P’s are the prices and the Q’s the volumes (quantities) of the product. Price comparisons are usually made directly.
Eurostat, Organization for Economic Cooperation and Development (OECD), "Eurostat-OECD Methodological Manual on Purchasing Power Parities", Publications Office of the European Union, Luxembourg, 2012