REER Calculation clarification

Algo Trading Business
1

Below is the calculation extract from the document given.



REER 



Let us calculate the REER component for China, India’s largest trading partner.



The exchange rate component= e/e1 = 1/102.59 = 0.00974 The inflation component = P/P1 = 120.3/102.1 = 1.178



The product of exchange rate component and inflation component = 0.098*1.37 =0.0114



Question



I wonder where is 1.37 underline above is getting from ? 



Thanks.



 

2

Hi Khairul,



Thank you for briniging the mistake to our notice. We have fixed the error in the document. Thank you.