What is big mac index of currencies

The Big Mac can also be a good indicator for the individual purchasing power of an economy since he exists worldwide in standard size, composition and quality.

What is The Big Mac index?

More information. Other interesting statistics. Inequality of income distribution in China based on the Gini index Gross domestic product GDP growth rate in China Inflation rate in China Distribution of GDP across economic sectors in China Main export partners of China in Statista Accounts: Access All Statistics.

THE ECONOMIST's Big Mac index shows US dollar overvalued against most global currencies

Basic Account. You only have access to basic statistics. Premium Account. Your perfect start with Statista. Corporate Account. Corporate solution including all features. Prices do not include sales tax. Leading companies trust Statista: Related Studies: Key Economic Indicators of China. All Information in one Presentation. Go to dossier. Statista is a great source of knowledge, and pretty helpful to manage the daily work. National accounts Consumer prices Productivity Investment International trade Stock exchange National accounts The most important statistics.

The most important statistics. Popular Related Keywords. Big Mac Big Mac index Show more price comparison prices price fast food price comparisons currency cost of living price index burger exchange rate CPI price level cost of living index PPP purchasing power parity PPS purchasing power standards purchasing power standard Hamburger purchasing power consumer prices purchasing power index currencies price level index McDonald's.

Need help with using Statista for your research? Tutorials and first steps.

Big Mac index - global prices for a Big Mac 2018

Further Content: Statistics, Studies, and Topic Pages. Latin America: Big Mac index in Argentina Big Mac index in Uruguay Big Mac index in Chile Big Mac index in Costa Rica Big Mac index in Colombia Big Mac index in selected countries Big Mac index in Peru Big Mac index in Mexico Big Mac index in Brazil Countries with the largest GDP per capita at purchasing power parity Taxes and social security contributions paid in cities worldwide, Czech Republic: Total tax rate of commercial profits in Oman Turnover of the manufacturing industry in Belgium Market Analytics.

Digital Media. Pay-per-View TVoD. Video Streaming SVoD. Statistics on the topic.

The Big Mac index

Free statistics. View price details. About Statista. Learn more about how Statista can support your business.

McDonald's as a Purchasing Power Parity Index

Do you have any questions about our business solutions? Contact us now. Yes, let me download! Exclusive Corporate feature.

Big Mac Index - Wikipedia

Economist Radio produces several podcasts a week and Economist Films produces short- and long-form video. A recipient of many editorial and marketing awards, The Economist was recently named the most trusted news source in the Trusting News Project Report.

Navigation menu

Contact Us. News in Focus Browse News Releases. Multimedia Gallery.

Trending Topics. Business Technology.

And, what better basket of goods than McDonald's Big Mac - or at least its equivalent - in various countries? In theory, the price of a Big Mac reflects a number of local economic factors, ranging from the cost of the ingredients to the cost of local production and advertising. The resulting PPP metric is therefore considered by many economists to be a reasonable measurement of real-world purchasing power.

But investors should remember that there are some important exceptions to the rule. The Big Mac Index is calculated by dividing the price of a Big Mac in one country by the price of a Big Mac in another country in their respective local currencies to arrive at an exchange rate. This exchange rate is then compared to the official exchange rate between the two currencies to determine if either currency is undervalued or overvalued according to the PPP theory.

For example, suppose that a Big Mac in the U. There are also many variants of the Big Mac Index that may be useful for investors.