Household purchasing power (national accounts)


Dernière mise à jour le :29/03/2018


Purchasing power is the volume of goods and services that an income can buy. The change in household purchasing power is calculated by subtracting from the growth rate of household gross disposable income (national accounts) the growth rate of the deflator of final consumption expenditure in national accounts. The latter differs somewhat from the growth rate of the consumer price index (CPI), mainly because its scope is broader than that of the CPI. It covers in particular the consumption of housing services charged to households that own the housing they occupy, banking intermediation services consumed by households, consumption of life insurance services...In addition, for some specific products such as non-life insurance, the methodology followed by national accountants differs somewhat from that of the CPI.