What does this year's Big Mac Purchasing Power Index say?
12/14/2021 • Customer news
Back in 1986, the Big Mac index was designed by the London newspaper The Economist as an easy guide to show whether currencies are at their "right" level. Twice a year, the Economist converts the average national price of Big Mac into US dollars using the exchange rate at that time. As Big Mac is a fully standardized product worldwide, the argument is that it should have the same relative price in each country.
With $ 7.06, Switzerland has the most expensive Big Mac in the world, according to the Big Mac index from July 2021. The price of Big Mac in the U.S. was $ 5.65 and $ 5.02 in the eurozone, the Statistician reported. This indicator practically shows that the Swiss currency is overvalued, because the Big Mac index of purchasing power is viewed in relation to the dollar.
For more information, visit the link.