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.
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.
El índice Big Mac es un indicador basado en el precio de una hamburguesa Big Mac en todo el mundo y refleja el poder adquisitivo de una economía. En 2023, el precio promedio más alto de una Big Mac en América Latina fue de 7,04 dólares estadounidenses, registrado en Uruguay. En la tercera posición se encuentra el país vecino, Argentina, donde el valor de la hamburguesa fue de 5,19 dólares. ¿Cómo se calcula el Índice Big Mac?El índice Big Mac es publicado por The Economist desde 1986 y es un indicador simplificado del poder adquisitivo de un país, ya que se calcula comparando los precios de una hamburguesa Big Mac en una gran cantidad de naciones. Para hacer la comparación, se utiliza la hamburguesa Big Mac, que es uno de los principales productos de McDonald's, porque está disponible en casi todos los países y se fabrica en tamaño, composición y calidad estándares.McDonald's en LatinoaméricaMcDonald’s es una cadena de restaurantes de comida rápida que opera a nivel mundial. En América Latina, McDonald's realiza la mayor parte de sus operaciones bajo la empresa Arcos Dorados Holdings, cuya sede está en Montevideo, Uruguay. El mayor mercado latinoamericano de esta marca es Brasil, donde McDonald's cuenta con una red de alrededor de 1.000 restaurantes.
El índice Big Mac es un indicador basado en el precio de una hamburguesa Big Mac en todo el mundo y refleja el poder adquisitivo de una economía. En enero de 2024, el precio medio de una Big Mac en México alcanzó su valor más alto del período con el precio de 5,19 dólares estadounidenses. Índice Big MacEl índice Big Mac es publicado por The Economist desde 1986 y es un indicador simplificado del poder adquisitivo de un país, ya que se calcula comparando los precios de una hamburguesa Big Mac en una gran cantidad de naciones. Para hacer la comparación, se utiliza la hamburguesa Big Mac, que es uno de los principales productos de McDonald's, porque está disponible en casi todos los países y se fabrica en tamaño, composición y calidad estándares.McDonald’s es una cadena de restaurantes de comida rápida que opera a nivel mundial. En América Latina, McDonald's realiza la mayor parte de sus operaciones bajo la empresa Arcos Dorados Holdings, cuya sede está en Montevideo, Uruguay.
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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 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.