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The Big Mac Index

Regional Big Mac Price Information Currency valuation Price per Unit in USs and NCU Overvaluation(+) / undervaluation(-) compared to PPP, % India -20 -40 Lagand Loction 1.5-28 128-3.09 3.09 - 3.76 13.76-4.45 -60 4.45- 4.91 4.91 -7.5 -80 2011 sep 2012 May 2013 Jan 2000 Apr 2010 Jul 2012 Jul 2013 Jul Source: The Big Mac Index, 2013 Source: The Big Mac Index, 2013 PPP and nominal exchange rate per US$ PPP - purchasing power parity Most overvalued currencies Most undervalued currencies exchange rate to PPP ratio, % exchange rate to PPP ratio, % 1 Norway 65 1 India -67 80 Venezuela 57 South Africa -60 Switzerland 47 Hong Kong -52 Sweden 35 Malaysia -50 60 Brazil 16 Ukraine -49 Finland 16 Egypt -48 Canada 15 China -43 France 10 Taiwan -42 40 Uruguay Russia 42 10 Denmark 10 Philippines -42 11 Italy 11 Saudi Arabia -41 20 12 Israel 12 Poland -40 13 Belgium 13 Indonesia -38 14 Germany 14 Sri Lanka -38 2011 Aug 2013 May 15 Euro area 15 Thailand -38 2012 Mar 2012 Oct Nominal US$ exchange rate US$ dollar PPP 2010 Jul 2013 Jul 2010 Jul 2013 Jul Source: The Big Mac Index, 2013 Source: The Big Mac Index, 2013 Source: The Big Mac Index, 2013

The Big Mac Index

shared by Knoema on Dec 07
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The Big Mac Index invented by The Economist is an informal way of measuring the purchasing power parity (PPP) between two currencies. Calculation of PPPs is based on the assumption that the dollar co...

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