THE BIG MAC index was invented by The Economist in 1986 as a lighthearted guide to whether currencies are at their “correct” level. It is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a burger) in any two countries.
Mcdonald's Menu With Prices 2019
Burgernomics was never intended as a precise gauge of currency misalignment, merely a tool to make exchange-rate theory more digestible. Yet the Big Mac index has become a global standard, included in several economic textbooks and the subject of dozens of academic studies. For those who take their fast food more seriously, we also calculate a gourmet version of the index for 55 countries plus the euro area.
- The one and only McDonald’s Big Mac® Combo Meal. Big Mac Ingredients include a classic sesame hamburger bun, Big Mac Sauce, American cheese and sliced pickles. The Big Mac Combo Meal is served with our World Famous Fries® and your choice of an icy Coca-Cola fountain drink.
- Where can you find the cheapest Big Mac in the world? For only $1.60 you.
- Combo meal in fast food restaurant (big mac meal or similar) in other cities. In Vina Causino the price is 20% cheaper than in Munich In Baghdad the price is 11% more expensive than in Munich In Gold Coast the price is 11% cheaper than in Munich In Wuxi the price is 49% cheaper than in Munich.
- The statistic depicts the prices for a Big Mac in Mexico from 2010 to 2020. The so-called Big Mac index is regarded as an indicator for the purchasing power of an economy.
Our Bottom Line: Big Mac Prices and Tax Proposals. The price of a Big Mac can give us insight about the purchasing power of different currencies. A Big Mac will cost you $5.06 in the U.S. And 19.6 yuan in China. However, converting $5.06, you get 34.93 yuan–more than its 19.6 yuan price.With 34.93 yuan you could get 1.78 Big Macs.
The GDP-adjusted index addresses the criticism that you would expect average burger prices to be cheaper in poor countries than in rich ones because labour costs are lower. PPP signals where exchange rates should be heading in the long run, as a country like China gets richer, but it says little about today's equilibrium rate. The relationship between prices and GDP per person may be a better guide to the current fair value of a currency.
Read more about the Big Mac index in “How big is China’s economy? Let the Big Mac decide”. You can also download the data or read the methodology behind the Big Mac index here.
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Big Mac Price History
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