The article examines whether the theory of Purchasing Power Parity (PPP) holds true for Central and Eastern European economies. It uses monthly data on real exchange rates for 12 countries and tests PPP separately with respect to the US dollar and Euro. The researchers found support for PPP in some of these economies, suggesting that their currencies are in line with what the theory predicts. This means that factors specific to each country can influence how well PPP holds true in practice.