This is a print-friendly version of www.whitehutchinson.com/news/lenews/2023/april/article103.shtml

White Hutchinson Leisure & Learning Group, Kansas City, MO, USA

The Big Mac index

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 equalize the prices of an identical basket of goods and services (in this case, a burger) in any two countries.

The index 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. The index also gave rise to the word burgernomics.

We thought looking at it as a measure of restaurant inflation would be interesting. Over the past 15 years, the cost of a big mac in the U.S. has risen 71%. Since 2019, it has increased by 9%.

Subscribe to monthly Leisure eNewsletter (www.whitehutchinson.com/ subscribe/ lenews/ )

© 1999 - 2026, White Hutchinson Leisure & Learning Group, Inc.
The contents of this website and eNewsletters are protected by USA and international copyright law. Permission is granted to download and print single copites of any of the contents or articles for personal use. No other copies may be made. Educational institutions may obtain permission to make multiple copies for classroom use by e-mailing us with details. The contents of articles may be quoted provided credit is given to the "(author's name), White Hutchinson Leisure & Learning Group, Kansas City, MO, USA". All other rights for use or reproduction of the contents and articles are reserved.