Definition: Price error

Category: Purchasing power parities

A price error occurs when price collectors price products that match the product specification but record the price incorrectly or they record the price correctly and error is introduced afterwards in the process of reporting and transmitting the price. Price error can also arise because the quantity priced is recorded wrongly (or error is introduced later during processing). Hence, when the price collected is standardised and adjusted to a reference quantity, it will not be correct. http://ec.europa.eu/eurostat/product?code=KS-RA-12-023&mode=view