| A relative price level is an expression of the price level in a specific country or seen in relation to one or more other countries, and expressed using price level indices where one country (or group of countries) has an index of 100. If, for example, the price level index for Norway is 130, with the EU at 100, this means that the price level in Norway is 30% higher than the price level in the EU Member States seen as a whole. A relative price level is only meaningful in a comparison between different areas, and says nothing about the price level in each individual geographical area in isolation. |