The Economist invented the Big Mac Index in 1986 as a casual way to measure currency over- and undervaluation. Forty years later, it is still surprisingly accurate.
How to Play: Guess if a Big Mac costs MORE or LESS in the country on the right than in the country on the left.
Name A
Name B
Top 10 Most Expensive Big Mac Countries
The Big Mac Index, published twice a year by The Economist, converts the local price of a Big Mac into US dollars and compares it to the US price. Differences indicate purchasing-power-parity over- or undervaluation of each currency. Wealthy countries with strong currencies pay the most; emerging markets pay the least.
| # | Name | Big Mac Price (USD) | Unit |
|---|---|---|---|
| 1 | Switzerland | 8.07 | USD |
| 2 | Lebanon | 7.50 | USD |
| 3 | Argentina | 7.48 | USD |
| 4 | Norway | 7.32 | USD |
| 5 | Sweden | 6.59 | USD |
| 6 | Israel | 6.39 | USD |
| 7 | Uruguay | 6.14 | USD |
| 8 | Denmark | 6.05 | USD |
| 9 | Iceland | 6.02 | USD |
| 10 | Eurozone (avg) | 5.69 | USD |
How the Big Mac Index Works
The Big Mac Index uses one standardized product available in nearly every country (over 100 McDonald’s markets). Same beef, same buns, same sauce — only the price changes. Local prices are converted to USD at current exchange rates and compared to the US price.
If a Big Mac costs $7 in Sweden and $5.69 in the US, the Swedish krona is ‘overvalued’ against the dollar by approximately 23% on a Big Mac basis. The index suggests the krona should weaken or US prices rise to bring them into line. In practice, factors beyond burger production cost (labor, rent, taxes) explain much of the divergence.
Argentina is a perennial outlier. Its Big Mac price in USD has swung from $1 to $7 in the past 20 years as the peso has experienced multiple inflation crises and currency controls. The Economist sometimes excludes Argentina from headline analyses due to its volatility.
Frequently Asked Questions
Where is a Big Mac most expensive?
Switzerland at $8.07 USD. Norway, Argentina, and Sweden are close behind. The Swiss premium reflects Switzerland’s high overall price level.
Where is a Big Mac cheapest?
Egypt at $2.10 USD. Russia, Turkey, and India are similarly low — reflecting low local price levels and weaker currencies vs USD.
Is the Big Mac Index serious economics?
Originally a joke from 1986, it has been validated by academic economists as a rough proxy for purchasing-power parity. It is taught in introductory economics courses.
How often does it update?
The Economist publishes the Big Mac Index twice a year, usually in January and July. Mid-year currency moves can shift the rankings significantly.
Note: Big Mac prices in USD per The Economist’s January 2024 Big Mac Index. Prices update biannually.
More Wise Games to Try