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How is the World CPI data calculated?

April 26, 2017calculated CPI Data world

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How is the World CPI data calculated?

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World and Regional CPI data are calculated by weighted geometric average. For example, CPI for advanced country group is labeled as CPIadv. Then CPIadv = EXP ∑(Wi * LN(CPIi)) where i denotes each advanced country, and W is each country’s relative share of the group weight. The weight used for the calculation is the PPP value of GDP. For more detailed information, please refer to the IFS Introduction pages, Section 11, “World Tables” which explains country groups, calculation of area totals and averages, and methodologies.