Relative purchasing power parity

Relative purchasing power parity is like comparing how much something costs in two different places. For example, if you were to buy a candy bar in one place, like a store in the United States, and another place, like a store in Japan, you would want to compare the cost of the candy bar in the two places. Relative purchasing power parity compares the prices of things to see if they are the same or different. It helps you understand why the prices in different places might be different, and it can help you figure out which place you should buy something from to get the best deal.