I am working in Excel and want to calculate the relative price level in 4 markets.
I know a good method I can use when I am only looking at 2 markets
USA UK Bubble gum 4 6 Lollypop 3 Chocolate bar 7 8
In the above example with 2 markets I would conclude that the price level is (6/4+7/8)/2 = 1,1875 higher in the UK than it is in the USA.
We can express this as USA = 1 UK = 1,1875
But how would I calculate this when we have four markets and don't have prices for all items in all markets?
USA UK France Germany Bubble gum 4 6 8 Lollypop 3 5 4 Chocolate bar 7 8 10
I need your help calculating the price levels in the example above. I'd like to do the calculations in Excel if possible.