Big Mac is cheapest in China (most expensive in Switzerland, annual Big Mac Index says)

BBC News Online ^ | April 24 2003

[knighthawk]

The cheapest Big Mac in the world can be bought in China, while the Swiss have to pay nearly four times as much for the same burger.

The Economist magazine's annual Big Mac Index found that McDonald's charged $1.20 for its burger in China and $4.52 in Switzerland.

The Index said these statistics showed that the Chinese yuan was the most undervalued currency in the world, while the Swiss franc was the most overvalued.

The Big Mac Index, introduced in 1986, compares burger prices in countries around the world, using the index as a rough guide to currency valuations.

Euro

It found that the US dollar was more overvalued last year than at any other time in the history of the index.

But it also showed the greenback sliding against other major currencies.

At the moment a Big Mac costs exactly the same in the US as in the countries that belong to the euro.

According to the Index, this implies the euro's purchasing power is exactly $1.

"So, at its current rate of $1.10 the euro is still significantly overvalued against the dollar," the Index said.

Other European currencies - such as the British pound, the Swedish kronor and the Danish kroner were still "significantly overvalued" against the euro, the Index said.

[knighthawk]

Cheapest burgers:

China: $1.20
Philippines: $1.23
Russia: $1.31

Most expensive burgers:

Switzerland: $4.52
Denmark: $3.99
UK: $3.08

[knighthawk]

Europe-list

If people want on or off this list, please let me know.

[So Cal Rocket]

"would you like SARS with that?"

[dwilli]

We'll defeat the Chinese Commies one clogged artery at a time. Would You like extra sauce on that?

[buffyt]

We took our oldest son with us to Europe in 1993. He got a happy meal in Rothenberg Germany and it was called a Junior Tute. He pronounced it yun'ior tuta. It cost about $6, more than double its price in US at the time. Came with a Fanta soda. He liked that.

[buffyt]

My same son was calling China "SARS Country" today. He heard it on TV.

[stands2reason]

The Big Mac Index, introduced in 1986, compares burger prices in countries around the world, using the index as a rough guide to currency valuations.

What a crock. This hardly takes into account the "burger wars" in America.

[rovenstinez]

In Mexico, tomorrow I'll pay 35 pesos for the McTrifica, Fries, (not french) with a coke. About $3.21 in Toluca, Estado de Mexico. With no Fiebre (Fever) Atipica. (SARS)

[discostu]

Not a crock at all. McHell puts a lot of work into studying local economies to get the burgers to their predetermined amount of labor to earn the money for their burger. McDs has been working these numbers for a long time, wasn't until 86 that economists took notice.

[Lake]

>>the Chinese yuan was the most undervalued currency in the world,

That's true. I had a #1 combo at MacDonalds two days ago in Guangzhou, China. It cost me 17 RMB (about $2 USD). Local food is even cheaper. The purchasing power of one RMB is about the same as one US dolar.

[Republic Rocker]

Trhey forgot to survey the STAPLES CENTER in Los Angeles.......!

[Zon]

Not a crock at all. McHell puts a lot of work into studying local economies to get the burgers to their predetermined amount of labor to earn the money for their burger. McDs has been working these numbers for a long time

When a new McDonald's goes up, Burger King says, "Thanks McDonald's -- we'll be putting a restaurant in across the street."

[kellynla]

And a pound of 4% fat ground sirloin is less..."Have it your way!"...LOL

[discostu]

Yep that's Burger King, always a day late and a dollar short.

[joesnuffy]

whats in them?
Hold the puppies and the tortoise
special orders just wont thwart us

[southernnorthcarolina]

Two All Beef Patties, Special Sauce, Lettuce, Cheese, Pickles, Onions, on a Sesame Seed Bun...

Maybe not the best thing in the world...

But at least it's not French... Tripe and calf's pancreas garnished with snails and garlic/butter/Bordeaux sauce...

Mmmmmm-mmmmm!

[Born to Conserve]

Nonsense -- nothing to do with currency.
The Chinese big mac is cheap because the Chinese labor is cheap.
The Swiss big mac is expensive because the Swiss labor is expensive.

[Citizen of the Savage Nation]

Switzerland is a rip, but it is one expensive place and those Europeans love their McDonalds. Don't know why. How does Holland rank in there? As for the Philippines, everything is cheap.

I think a better way to calibrate the currencies is to compare, ahem, 'adult' companionship services, but then we probably don't want to go there...

[kylaka]

It doesn't take into account that Chinese Big Macs are made of ground dog or cat either.

[rogue yam]

Last May I went to Mickey D's in Zurich. There they were serving up the McFondue. Made me proud to be an American.