The Big Mac Index Update

The Economist has recently updated its famous “Big Mac Index” based on McDonald’s Big Mac prices, collected throughout the world. Now the cheapest burgers in US Dollar terms can be bought in Ukraine: for $1.2 only. The most expensive ones are being sold in Switzerland, where you should pay $7.54 for one burger.

Big Mac Index shows, how much the national currency is “undervalued” or “overvalued” in relation to “fair” Big Mac price. In respond to the criticism that you would expect average burger prices to be cheaper in poor countries than in rich ones, it was adjusted for differences in countries' GDP per capita. E. g., in case of Russia, US$ Index of -57.75 means that current Russian Ruble/US$ market exchange rate is 57.75% lower than its Big Mac purchasing power parity level.

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