Relative purchasing power parity
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Relative Purchasing Power Parity is an economic theory which predicts a relationship between the inflation rates of two countries over a specified period and the movement in the exchange rate between their two currencies over the same period. It is a dynamic version of the absolute purchasing power parity theory.[1][2]
A reason for the prominence of this concept in economic research is the fact that most countries publish inflation data normalized to an arbitrary year, but not absolute price level data.