International Comparison

While short-term economic monitoring focuses on the measurement of price trends over time, spatial price comparisons are used to identify structural differences between places and/or regions. The results of spatial price comparisons can be used directly to represent differences in price levels. Those results are relevant, for example, for equalisation payments to staff sent abroad, for decisions on business locations or for assessing the price convergence within an economic area. The results of spatial price comparisons are indirectly used to deflate economic aggregates. This allows drawing real comparisons between regions or countries in terms of economic power or wealth indicators.
In the German statistical system spatial price comparisons are currently performed only for the international level. Differences within Germany are not examined.

For real comparisons of economic aggregates such as the gross domestic product, so-called purchasing power parities are calculated in a European and international context. Also, when taking account of exchange rates, purchasing power parities can be used to calculate comparative price levels.

For purposes of determining the remuneration of public officials and soldiers sent abroad, the Federal Statistical Office also calculates place-to-place index numbers in accordance with the Federal Civil Service Remuneration Act (Article 55, para. 2). For that purpose, price comparisons between the individual duty stations of German missions abroad and the seat of the Federal Government are conducted.

Calculating parities of consumer prices was discontinued from the end of reference year 2009.