Global CPI

[wzd]

With all the attention to the strength of the dollar, I began wondering about how a "global CPI" would have changed over the last couple of decades (and the next of course). A global CPI would be some kind of US dollar based (because my investments are mostly US dollars) CPI. The global CPI would average (or simply detail) the cost of the basket of goods in US dollars in Europe, Japan, China, SA, Canada, Mexico, and maybe a few others.

Is there any data like this around that anyone is aware of?

 

[ESRBob]

You might search around for Purchasing Power Parity studies, as they need to compare CPIs across lots of countries (and run that against exchange rate changes since the idea is these will balance each other out).

I don't know but its a place to start looking.

ESRBob

 

[Hyperborea]

You can go back to 1988 with the Economist's "Big Mac" index.
http://www.economist.com/markets/Bigmac/Index.cfm

The OECD data will get you to 1980.
http://www.oecd.org/about/0,2337,en_2649_34357_1_1_1_1_1,00.html

One thing to be careful of in "global CPI" is what do you put in your basket. Do you include a loaf of bread? What if bread isn't common in a country and they eat rice instead. Bread in that country might be relatively expensive and not representative. This applies to all kind of good and services.

 

[wzd]

Interesting food for thought. I'm looking at some of those articles and others found via google.

Thanks