What Is Relative Purchasing Power Parity (RPPP) in Economics?
What Is Relative Purchasing Power Parity (RPPP)? Relative purchasing power parity (RPPP) is an expansion of the traditional purchasing power parity (PPP) theory to include changes in inflation over time. Purchasing power is the power of money expressed by the number of goods or services that one unit can buy, and which can be reduced by inflation.