Purchasing Power Index

The Purchasing Power Index (PPI) measures how much goods and services a unit of currency can buy in a specific location compared to a standard or other areas. Think of it as an indicator of the cost of living: a higher PPI means your money can purchase more items, indicating lower prices, while a lower PPI suggests higher prices and reduced buying power. It helps compare affordability between different cities or countries, highlighting where your money stretches further or less. Essentially, the PPI provides insight into the relative cost of living and the real value of income across regions.