Methodology

Metadata

The concept of PPPs as well as details on the methodology, release policy, and quality are described in the  purchasing power parities (PPPs) metadata.

Estimates for 2018, 2019, and 2020

Eurostat has issued a  note about the impact of the COVID-19 pandemic on the price collection for PPPs and on the production of the annual PPP results. It also provides information on the increased use of transaction data for PPP. Additionally, it explains how the UK's exit from the EU is accounted for in the calculation of PPPs.

Product list for consumer goods and services

PPPs are calculated based on prices for comparable and representative products, collected by all participating countries. For more details, please consult the  list of products used in the 2021-2023 cycle of price surveys for consumer goods and services.

Health and hospital-specific price comparison

Health services account for a large and increasing share of production and expenditure in EU countries. However, the expenditure per person varies noticeably between countries. For policy purposes, it is relevant to know whether these differences are because more services are being used or because the prices of these services differ.

PPPs for outpatient services are estimated based on the same survey methodology as for other consumer services. For hospital services, prices are collected for a sample of medical and surgical case types, typically from national health authorities. These prices can be administrative, or negotiated between the service providers and the public body in charge.

The OECD-Eurostat paper  Comparing hospital and health prices and volumes internationally describes this methodology and presents the results of the OECD and Eurostat collaboration in developing price comparisons for health goods and services.