The Big Mac index: Saudi Arabia

Macro

2026-09-01

Description

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

Published by
The Economist
Frequency
Aperiodically
Next Update
Hashtags
Big Mac index PPP

AI Data Insight

In the first quarter of 2026, the Saudi Arabia Big Mac Index reported at 5.0674 USD, remaining nearly flat compared to 5.0664 USD in the previous quarter (the third quarter of 2025) and continuing a steady trend since the end of 2022. Benefiting from the Saudi Riyal (SAR) pegged exchange rate system to the US dollar, coupled with mild local food inflation, the country's restaurant pricing has demonstrated extremely strong stability amidst regional geopolitical volatility.

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AI Data Insight

In the first quarter of 2026, the Saudi Arabia Big Mac Index reported at 5.0674 USD, remaining nearly flat compared to 5.0664 USD in the previous quarter (the third quarter of 2025) and continuing a steady trend since the end of 2022. Benefiting from the Saudi Riyal (SAR) pegged exchange rate system to the US dollar, coupled with mild local food inflation, the country's restaurant pricing has demonstrated extremely strong stability amidst regional geopolitical volatility.

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Macro
Description

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

Published by
The Economist
Frequency
Aperiodically
Next Update
Hashtags
Big Mac index PPP