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GDP price levels relative to the US

World Bank

What you should know about this indicator

  • It shows whether a country’s currency has more or less purchasing power than its exchange rate implies, compared to the United States.
  • A value below one means local goods and services are cheaper than in the US, while a value above one suggests local prices are higher.
  • These comparisons are based on PPP conversion rates (also called PPP conversion factors or PPP rates). PPP rates estimate how many units of a country’s local currency are needed to buy (roughly) the same basket of goods and services in that country that one US dollar would buy in the United States. For this indicator (at the level of ), the comparison is made using a broad, economy-wide basket of goods and services.
  • PPP rates are calculated by the International Comparison Program (ICP), which uses the United States as a benchmark country.
  • This data is expressed in at 2021 prices.

How is this data described by its producer - World Bank?

The price level ratio, or price level index, is the ratio of a purchasing power parity (PPP) conversion factor to the corresponding market exchange rate between two countries. For this series the base country is the United States. It provides a measure of the differences in price level between the country and the United States by indicating the number of units of the common currency (US dollars) needed to buy the same volume of the aggregation level in each country. At the level of GDP, the price level ratio provides a measure of the differences in the general price levels of countries.

Aggregation method:

No aggregation provided for this indicator.

Statistical concept and methodology:

Methodology: For more information on market exchange rate, please refer to the metadata for "DEC alternative conversion factor (LCU per US$)" [PA.NUS.ATLS]. For the concept and methodology of PPP, please refer to the International Comparison Program (ICP)’s website (https://www.worldbank.org/en/programs/icp). Statistical concept(s): 1. The ratio of the GDPs of two economies when both are valued at national price levels and expressed in local currency units has three component ratios: GDP ratio = price level ratio × volume ratio × currency ratio. (B3.1.1) 2. When converting the GDP ratio in equation (B3.1.1) to a common currency using the market exchange rate, the resulting GDPXR ratio has two component ratios: GDPXR ratio = price level ratio × volume ratio. (B3.1.2) The GDP ratio in equation (B3.1.2) is expressed in a common currency, but it reflects both the price level differences and the volume differences between the two economies. 3. A PPP is defined as a spatial price deflator and currency converter. It is composed of two component ratios: PPP = price level ratio × currency ratio. (B3.1.3) 4. When a PPP is used, the GDP ratio in equation (B3.1.1) is divided by equation (B3.1.3), and the resulting GDPPPP ratio has only one component ratio: GDPPPP ratio = volume ratio. (B3.1.4) The GDP ratio in equation (B3.1.4) is expressed in a common currency, is valued at a common price level, and reflects only differences in volume between the two economies.

Development relevance:

The price level ratio provides a comparison of price levels across countries. If a country’s price level ratio is lower than that of another country, then its items or expenditure aggregates are less expensive than those in the other country. Conversely, if a country’s PLI is higher than that of another country, then its items or expenditure aggregates are more expensive than those in the other country.

Purchasing power parities (PPPs), price level ratios, and PPP-based expenditures to which they give rise are primarily used to make spatial comparisons of volume and per capita consumption or levels of GDP and its expenditure components across countries. PPP-based indicators are used for national, regional, and global policy making and analysis across the socioeconomic spectrum from poverty and inequality, to health and education, to energy and climate, through to economic growth, labor, productivity, trade, competitiveness, and infrastructure. A number of Sustainable Development Goals use PPP-based indicators to measure development progress.

  • Recommended uses of price level ratios include: to make spatial comparisons of price levels.
  • Recommended uses of price level ratios with limitations include: to analyze changes over time in relative prices; to analyze price convergence; and to make spatial comparisons of the cost of living.

Limitations and exceptions:

Global PPP estimates underlying this indicator are produced by the ICP Global Office and regional implementing agencies, based on data supplied by the national implementing agencies in the participating economies, and in accordance with the methodology recommended by the ICP Technical Advisory Group and approved by the ICP Governing Board. As such, these results are not produced by participating economies as part of their national official statistics.

Price level ratios are not recommended to use as a precise measure to establish strict rankings of countries.

GDP price levels relative to the US
World Bank
Ratio of Purchasing Power Parity (PPP) conversion factor to market exchange rate.
Source
World Development Indicators - World Bank (2026) – processed by Our World in Data
Last updated
February 27, 2026
Next expected update
February 2027
Date range
1990–2024

Sources and processing

This data is based on the following sources

World Development Indicators - World Bank – World Development Indicators

The World Development Indicators (WDI) database, published by the World Bank, is a comprehensive collection of global development data, providing key economic, social, and environmental statistics. It includes over 1,500 indicators covering more than 200 countries and territories, with data spanning several decades.WDI serves as a vital resource for policymakers, researchers, businesses, and analysts seeking to understand global trends and make data-driven decisions. The database covers a wide range of topics, including economic growth, education, health, poverty, trade, energy, infrastructure, governance, and environmental sustainability.The indicators are sourced from reputable national and international agencies, ensuring high-quality, consistent, and comparable data. Users can access the database through interactive online tools, API services, and downloadable datasets, facilitating detailed analysis and visualization.WDI is also used for tracking progress on the Sustainable Development Goals (SDGs) and other global development initiatives. By providing accessible and reliable statistics, it helps to inform policy discussions and strategies globally.Whether for academic research, policy planning, or economic analysis, the World Development Indicators database is an essential tool for understanding and addressing global development challenges.

Retrieved on
February 27, 2026
Retrieved from
https://data.worldbank.org/indicator/PA.NUS.PPPC.RF
Citation
This is the citation of the original data obtained from the source, prior to any processing or adaptation by Our World in Data. To cite data downloaded from this page, please use the suggested citation given in Reuse This Work below.
World Development Indicators, World Bank (WB), uri: https://databank.worldbank.org/source/world-development-indicators, publisher: World Development Indicators, type: International database. Indicator PA.NUS.PPPC.RF (https://data.worldbank.org/indicator/PA.NUS.PPPC.RF). World Development Indicators - World Bank (2026). Accessed on 2026-02-27.

The World Development Indicators (WDI) database, published by the World Bank, is a comprehensive collection of global development data, providing key economic, social, and environmental statistics. It includes over 1,500 indicators covering more than 200 countries and territories, with data spanning several decades.WDI serves as a vital resource for policymakers, researchers, businesses, and analysts seeking to understand global trends and make data-driven decisions. The database covers a wide range of topics, including economic growth, education, health, poverty, trade, energy, infrastructure, governance, and environmental sustainability.The indicators are sourced from reputable national and international agencies, ensuring high-quality, consistent, and comparable data. Users can access the database through interactive online tools, API services, and downloadable datasets, facilitating detailed analysis and visualization.WDI is also used for tracking progress on the Sustainable Development Goals (SDGs) and other global development initiatives. By providing accessible and reliable statistics, it helps to inform policy discussions and strategies globally.Whether for academic research, policy planning, or economic analysis, the World Development Indicators database is an essential tool for understanding and addressing global development challenges.

Retrieved on
February 27, 2026
Retrieved from
https://data.worldbank.org/indicator/PA.NUS.PPPC.RF
Citation
This is the citation of the original data obtained from the source, prior to any processing or adaptation by Our World in Data. To cite data downloaded from this page, please use the suggested citation given in Reuse This Work below.
World Development Indicators, World Bank (WB), uri: https://databank.worldbank.org/source/world-development-indicators, publisher: World Development Indicators, type: International database. Indicator PA.NUS.PPPC.RF (https://data.worldbank.org/indicator/PA.NUS.PPPC.RF). World Development Indicators - World Bank (2026). Accessed on 2026-02-27.

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“Data Page: GDP price levels relative to the US”, part of the following publication: Max Roser, Bertha Rohenkohl, Pablo Arriagada, Joe Hasell, Hannah Ritchie, and Esteban Ortiz-Ospina (2023) - “Economic Growth”. Data adapted from World Development Indicators - World Bank. Retrieved from https://archive.ourworldindata.org/20260512-185716/grapher/gdp-price-levels-relative-to-the-us.html [online resource] (archived on May 12, 2026).

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World Development Indicators - World Bank (2026) – processed by Our World in Data

Full citation

World Development Indicators - World Bank (2026) – processed by Our World in Data. “GDP price levels relative to the US – World Bank” [dataset]. World Development Indicators - World Bank, “World Development Indicators 125” [original data]. Retrieved May 12, 2026 from https://archive.ourworldindata.org/20260512-185716/grapher/gdp-price-levels-relative-to-the-us.html (archived on May 12, 2026).

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