At **** U.S. dollars, Switzerland has the most expensive Big Macs in the world, according to the January 2025 Big Mac index. Concurrently, the cost of a Big Mac was **** dollars in the U.S., and **** U.S. dollars in the Euro area. What is the Big Mac index? The Big Mac index, published by The Economist, is a novel way of measuring whether the market exchange rates for different countries’ currencies are overvalued or undervalued. It does this by measuring each currency against a common standard – the Big Mac hamburger sold by McDonald’s restaurants all over the world. Twice a year the Economist converts the average national price of a Big Mac into U.S. dollars using the exchange rate at that point in time. As a Big Mac is a completely standardized product across the world, the argument goes that it should have the same relative cost in every country. Differences in the cost of a Big Mac expressed as U.S. dollars therefore reflect differences in the purchasing power of each currency. Is the Big Mac index a good measure of purchasing power parity? Purchasing power parity (PPP) is the idea that items should cost the same in different countries, based on the exchange rate at that time. This relationship does not hold in practice. Factors like tax rates, wage regulations, whether components need to be imported, and the level of market competition all contribute to price variations between countries. The Big Mac index does measure this basic point – that one U.S. dollar can buy more in some countries than others. There are more accurate ways to measure differences in PPP though, which convert a larger range of products into their dollar price. Adjusting for PPP can have a massive effect on how we understand a country’s economy. The country with the largest GDP adjusted for PPP is China, but when looking at the unadjusted GDP of different countries, the U.S. has the largest economy.

As of January 2025, Argentina had the highest Big Mac Index and Guatemala, the lowest, among the Latin American countries measured. The so-called Big Mac Index is regarded as an indicator for the purchasing power of an economy. In Guatemala, it was estimated that a Big Mac would cost an average of 4.01 U.S. dollars, while the average price for a Big Mac burger in Brazil amounted to approximately 4.03 U.S. dollars. How is the Big Mac Index calculated?The Bic Mac index has been published annually by The Economist since 1986 and is rated as a simplified indicator of a country’s individual purchasing power. As many countries have different currencies, the standardized Big Mac prices are calculated by converting the average national Big Mac prices with the latest exchange rate to U.S. dollars. The Big Mac, as the top-selling McDonald’s burger, is used for comparison because it is available in almost every country and manufactured in a standardized size, composition and quality.McDonald's in Latin AmericaMcDonald’s is a worldwide operating fast food restaurant chain with headquarters in Oak Brook, Illinois. In Latin America, McDonald's largest franchisee is Arcos Dorados Holdings, with headquarters in Montevideo, Uruguay. Brazil is the largest Latin American market for McDonald's when it comes to the size of the franchise network, as over 1,000 McDonald's restaurants are in operation in the Brazilian territory.

The average price for a Big Mac burger in Peru was estimated at 4.53 U.S. dollars in January 2025. The so-called Big Mac index is regarded as an indicator for the purchasing power of an economy. Buying a Big Mac in Peru is cheaper than, for instance, in neighboring Chile. Big Mac IndexThe Bic Mac index has been published annually by The Economist since 1986 and is rated as a simplified indicator of a country’s individual purchasing power. As many countries have different currencies, the standardized Big Mac prices are calculated by converting the average national Big Mac prices with the latest exchange rate to U.S. dollars.The Big Mac, as the top-selling McDonald’s burger, is used for comparison because it is available in almost every country and manufactured in a standardized size, composition and quality. McDonald’s is a worldwide operating fast food restaurant chain with headquarters in Oak Brook, Illinois. In Latin America, McDonald's largest franchisee is Arcos Dorados Holdings, with headquarters in Montevideo, Uruguay.

Inflation in Peru After two years of hyperinflation in 1989 and 1990, the inflation rate of Peru slowed down until 2022, following the trend of the global inflation crisis. Nonetheless, the Andean country still ranks in the middle of the table of Latin American countries with the highest inflation rate during that same year and remains with significantly lower price increases than the region’s average. Some sectors are more impacted than others, the category with the highest price increases as of September 2023, were food and non-alcoholic beverages, in contrast, the housing and housing services sector presented a slight deflation during the same period.

In 2025, a Big Mac was estimated to cost an average of 4.12 U.S. dollars in McDonald's restaurants located in Honduras. The price went down one cent of a dollar in comparison to the previous year. Guatemala is the Latin American country with the lowest Big Mac index.

In 2024, Brazil was the sixth Latin American country where buying a Big Mac was the most expensive. The so-called Big Mac index is regarded as an indicator for the purchasing power of an economy. The average price for a Big Mac burger in Brazil was estimated at **** U.S. dollars in January 2024, an increase in price in comparison to the previous year. In the past decade, the Big Mac index in Brazil went below the * dollar threshold in January 2016. Big Mac IndexThe Bic Mac index has been published annually by The Economist since 1986 and is rated as a simplified indicator of a country’s individual purchasing power. As many countries have different currencies, the standardized Big Mac prices are calculated by converting the average national Big Mac prices with the latest exchange rate to U.S. dollars.The Big Mac, as the top-selling McDonald’s burger, is used for comparison because it is available in almost every country and manufactured in a standardized size, composition and quality. McDonald’s is a worldwide operating fast food restaurant chain with headquarters in Oak Brook, Illinois. In Latin America, McDonald's largest franchisee is Arcos Dorados Holdings, with headquarters in Montevideo, Uruguay.

The so-called Big Mac index is regarded as an indicator for the purchasing power of an economy. The average price for a Big Mac burger in Mexico was estimated at 4.6 U.S. dollars in January 2025. Due to the high increases during the last few years, the Big Mac burger price became one of the highest in Latin America. Big Mac Index The Bic Mac index has been published annually by The Economist since 1986 and is rated as a simplified indicator of a country’s individual purchasing power. As many countries have different currencies, the standardized Big Mac prices are calculated by converting the average national Big Mac prices with the latest exchange rate to U.S. dollars.The Big Mac, as the top-selling McDonald’s burger, is used for comparison because it is available in almost every country and manufactured in a standardized size, composition and quality. McDonald’s is a worldwide operating fast food restaurant chain with headquarters in Oak Brook, Illinois. In Latin America, McDonald's largest franchisee is Arcos Dorados Holdings, with headquarters in Montevideo, Uruguay. Power Purchasing Parity This conversion endeavor seeks to level the purchasing power disparities among nations by neutralizing price discrepancies. Notably, in Mexico, the Purchasing Power Parity (PPP) has demonstrated a consistent upward trajectory, yielding positive repercussions on the minimum wage for the labor force. This, in turn, has triggered a favorable effect on the affordability of the essential food basket. Furthermore, this upswing has propelled five major Mexican cities into the upper positions of PPP rankings within Latin America. Consequently, Mexico now stands as the 15th largest global economy, a status achieved despite a slight, yet steady, decline in its share of the global GDP, which is adjusted according to PPP metrics.

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The theory of purchasing power parity (PPP) has long been a staple of international economic analysis. Recent years have seen the rise in popularity of a tongue-in-cheek, fastfood version of PPP: The Big Mac index. In this article, Michael Pakko and Patricia Pollard describe how comparisons of Big Mac prices around the world contain the ingredients necessary to demonstrate the fundamental principles of PPP. They show that the Big Mac index does nearly as well as more comprehensive measures of international price comparisons and that deviations from "McParity" illustrate why PPP often appears not to hold as a practical matter.

In 2025, a Big Mac was estimated to cost an average of 4.01 U.S. dollars in McDonald's restaurants located in Guatemala. Costa Rica is one of the Latin American countries where the price of a Big Mac is at its highest, while Guatemala recorded the lowest price in the region.

In January 2025, it was estimated that a Big Mac burger in Argentina would cost an average of 6.95 U.S. dollars. Overall, Argentina ranked with the highest price for a Big Mac in selected Latin American countries. The Big Mac Index in Argentina The Big Mac Index is an indicator that measures an economy's purchasing power. As it is mainly a standardized product, elaborated similarly across many markets, the evolution of its cost can provide insights into variations of real consumption prices in a given country. For instance, the price for a Big Mac in Argentina decreased by almost half from 2018 to 2019. This reflects Argentina's peso devaluation in comparison to the U.S. dollar and other foreign currencies in that period, caused by high inflation rates in the country, among other macroeconomic reasons. McDonald's in Latin America Arcos Dorados Holdings Inc. is McDonald's franchisee in Latin America. The company's name was inspired by McDonald's famous logo, as 'Arcos Dorados' means 'Golden Arches' in Spanish. It manages the brand's operations in Mexico, Central America, the Caribbean, and South America. Arcos Dorados’ revenue averages three billion U.S. dollars per year, making it McDonald's largest franchisee in the world. The company is also publicly listed in the New York Stock Exchange. Based on its market capitalization value, Arcos Dorados' net worth was estimated at around 1.64 billion U.S. dollars in 2023.

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Discussion of purchasing power parity (PPP) using the price of the McDonald's Big Mac sandwich.

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The so-called Big Mac index is regarded as an indicator for the purchasing power of an economy. The average price for a Big Mac burger in Colombia was estimated at **** U.S. dollars in January 2025. Colombia price for a Big Mac is among the four highest in Latin America. Big Mac IndexThe Bic Mac index has been published annually by The Economist since 1986 and is rated as a simplified indicator of a country’s individual purchasing power. As many countries have different currencies, the standardized Big Mac prices are calculated by converting the average national Big Mac prices with the latest exchange rate to U.S. dollars.The Big Mac, as the top-selling McDonald’s burger, is used for comparison because it is available in almost every country and manufactured in a standardized size, composition and quality. McDonald’s is a worldwide operating fast food restaurant chain with headquarters in Oak Brook, Illinois. In Latin America, McDonald's largest franchisee is Arcos Dorados Holdings, with headquarters in Montevideo, Uruguay. Inflation in Colombia Over the past two decades, Colombia has generally seen a decline in the inflation rate, with a small upward trend as of 2023, reaching ***** percent. However, there are forecasts indicating a steady decline in the inflation rate for the next five years. In the year 2024, the annual inflation rate has been lower compared to previous years, particularly in the sector of information and communication, which recorded a negative inflation rate of *** percent, This has placed Colombia at the fifth position among Latin American countries with the highest annual inflation rate in comparison to previous years as of 2023.

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The so-called Big Mac index is regarded as an indicator for the purchasing power of an economy. The average price for a Big Mac burger in Uruguay was estimated at **** U.S. dollars in January 2025. In comparison to the value registered a year earlier, this represents a considerable increase. In Latin America, Uruguay had the highest price for a Big Mac in 2024. Big Mac IndexThe Bic Mac index has been published annually by The Economist since 1986 and is rated as a simplified indicator of a country’s individual purchasing power. As many countries have different currencies, the standardized Big Mac prices are calculated by converting the average national Big Mac prices with the latest exchange rate to U.S. dollars.The Big Mac, as the top-selling McDonald’s burger, is used for comparison because it is available in almost every country and manufactured in a standardized size, composition and quality. McDonald’s is a worldwide operating fast food restaurant chain with headquarters in Oak Brook, Illinois. In Latin America, McDonald's largest franchisee is Arcos Dorados Holdings, with headquarters in Montevideo, Uruguay.

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The so-called Big Mac index is regarded as an indicator for the purchasing power of an economy. In 2025, the average price for a Big Mac burger in Chile was estimated at 4.55 U.S. dollars. Big Mac IndexThe Bic Mac index has been published annually by The Economist since 1986 and is rated as a simplified indicator of a country’s individual purchasing power. As many countries have different currencies, the standardized Big Mac prices are calculated by converting the average national Big Mac prices with the latest exchange rate to U.S. dollars.The Big Mac, as the top-selling McDonald’s burger, is used for comparison because it is available in almost every country and manufactured in a standardized size, composition, and quality. McDonald’s is a worldwide operating fast food restaurant chain with headquarters in Oak Brook, Illinois. In Latin America, McDonald's largest franchisee is Arcos Dorados Holdings, with headquarters in Montevideo, Uruguay.

Inflation in Chile During 2022, the inflation rate of Chile was 11.25 percent, in general, price increases in the South American country remained low from 2009 to 2021. Nonetheless, with the global inflation crisis in the following years the rate increased significantly. Still, Chile remains with an inflation lower than the Latin America average. Moreover, price increases have been impacting sectors differently, in June 2023, the industry with the highest inter-annual Consumer Price Index (CPI) was alcoholic beverages and tobacco, in contrast, the communications sector recorded a slight deflation.