The Global price level, as reported by the World Bank, is a way to compare the cost of living between different countries.
It's measured using Purchasing Power Parities (PPPs), which help us understand how much money is needed to buy the same things in different places.
Price level indexes (PLIs), with the world average set at 100, are calculated by dividing the purchasing power parities (PPPs), where 1 PPP equals 1 US dollar in the US, by the market exchange rates, also equated to 1 US dollar.
When the PLI exceeds 100, it signifies that the prices in that economy are above the global average.
Conversely, a PLI below 100 suggests that the prices are below the world average.