The relative PPP means that there is a percentage change in the two national currency which is equal to the difference between percentage change in national price levels. Suppose that the price of one country's price level rises(here the US) more than with another country (Europe) price level then the cost of the US goes up more than that of Europe. But the difference here is that the domestic and foreign purchasing power does not change. The relative exchange PPP takes into account the time interval over price level and exchange rate. Generally, the national government cannot make an interest to compute the international standardized commodities. In this case, the relative PPP is useful for calculating the price level. So, it makes sense to calculate the percentage exchange rates and inflation rate.
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