The reason for the slow adjustment of the real exchange rate toward purchasing power parity is that

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All of these factors contribute to the slow adjustment of the real exchange rate toward purchasing power parity. Transportation costs and trade barriers such as tariffs can lead to price differences between countries, affecting the relative prices of goods in each country. The fact that not all goods can be traded means that consumers in different countries may not have access to the same goods, which can affect the relative prices of goods in each country. Finally, differences in consumption patterns between countries mean that even if similar goods are traded, the relative prices may not necessarily converge to levels predicted by purchasing power parity.

The Reason for the Slow Adjustment of the Real Exchange