| Description |
The adjusted gross disposable income of households per capita in PPS is calculated as the adjusted gross disposable income of households and Non-Profit Institutions Serving Households (NPISH) divided by the purchasing power parities (PPP) of the actual individual consumption of households and by the total resident population. Purchasing power parities (PPPs) are indicators of price level differences across countries. PPPs tell us how many currency units a given quantity of goods and services costs in different countries. PPPs can thus be used as currency conversion rates to convert expenditures expressed in national currencies into an artificial common currency, the purchasing power standard (PPS), eliminating the effect of price level differences across countries. The main use of PPPs is to convert national accounts aggregates into comparable volume aggregates. Applying nominal exchange rates in this process would overestimate the disposable income of countries with high price levels relative to countries with low price levels. The use of PPPs ensures that the adjusted disposable of all countries is valued at a uniform price level and thus reflects only differences in the actual volume of the economy. -> From "Reference metadata": https://ec.europa.eu/eurostat/cache/metadata/en/tec00113_esmsip2.htm |
| Definition |
Not specified |
| Outcome type |
Economic impacts |
| Category |
FoodAffordability |
| Connects to transition domains |
None specified |
| Unit(s) of measurement description |
Purchasing power standard (PPS, EU27 from 2020), per inhabitant |
| Unit(s) of measurement |
Purchasing power standard (PPS, EU27 from 2020) |
| EU 2025 SDG Indicator |
None specified |
| Supply chain components |
ConsumptionRetail |
| Methodology |
Not specified |