A Guide to the Compilation of Subnational Purchasing Power Parities (PPPs)

This guide provides guidance to regional ICP implementation agencies and NSOs that may wish to compile spatial price indices at a sub-national level. NSOs involved in the compilation of sub-national PPPs are advised to also consult the guide on CPI-ICP integration. This guide has four objectives: 1) To communicate effectively to potential users the objectives and outcomes of a programme for the computation of sub-national PPPs and/or spatial CPIs; 2) to serve as a guide to ICP and CPI practitioners, whatever their role, providing basic reference materials; 3) to advise users of sub-national spatial price indices on the use and interpretation of the resulting price level and real expenditure comparisons; and 4) to discuss challenges in terms of the scope and applications, establishment of the survey framework, and methodological guidelines and to share some practical issues that arise in setting up such a programme.