Purchasing power parity

Purchasing power is the inverse of price level

Calculating a price index ratio of price levels at two different times
Annual inflation
P(t+1)/P(t)
Cumulative inflation
[P(t+N)/P(t)]^(1/n)
internal purchasing power amount of goods and services that can
be purchased with $1 in the US
1/P(t,$)
external purchasing power the amount of goods and services that
can be purchased with $1 outside the US
1/S(t, $/x) * 1/P(t, x)
necessary to purchase some amount of pounds with dollar; examine
purchasing power of those pounds in Britain