![cost of a big mac in the us cost of a big mac in the us](https://64.media.tumblr.com/18c82509ed0bbf15bd615285b27f993d/3a5027c1924a4b0e-e4/s540x810/89021a3c0f9f32aa215babbba72dbf7b5fdb5c7c.png)
And because the sandwich exists in so many places around the world, some look at the burger as a way to gauge purchasing power of different currencies. It describes the ‘burgernomics’ as “a convenient market basket of goods through which the purchasing power of different currencies can be compared.” The itself contains several goods and services between the two buns, such as: food prices (obviously), labor, power, transportation and more.
![cost of a big mac in the us cost of a big mac in the us](https://www.eatthis.com/wp-content/uploads/sites/4/2020/10/mcdonalds-exterior.jpg)
The index has been studied by many, including the st. Select analyzed the Big Mac index, what it means for consumers and how you can fight back against the rising costs of everyday items. And because the price of a Big Mac embodies multiple economic factors including the cost of labor, transportation, food and overall inflation - it leads some to believe the sandwich is one way to understand the current inflation rates and purchasing power of the US dollar. So why does this matter to you? Well the price of a Big Mac has risen a staggering 40% over the last 10 years. The index incorporates the concept of purchasing-power parity, which is the way to track the strength of an individual currency, and what ‘purchasing power’ it has. Invented in 1957 by an early McDonald’s franchisee, the Big Mac remains a very popular fast-food item.Īnd because of its global popularity, The Economist invented the “Big Mac index” in 1986 as a unique way to track the price of the famous sandwich against other currencies. There are few things that are as synonymous with American culture as the iconic Big Mac burger from McDonald’s.