The Big Mac index: Turkey

Macro

2026-03-02

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 Q1 2026, Turkey's Big Mac Index climbed to a historical high of $5.9058, rising further from the previous value of $5.5953, indicating that local price increases have far exceeded the pace of Lira depreciation. Under the double blow of the official push for "real exchange rate appreciation" and the 27% minimum wage hike in early 2026, the US-dollar-denominated cost of living in Turkey has surged, meaning it is no longer a cheap tourism or manufacturing base.

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AI Data Insight

In Q1 2026, Turkey's Big Mac Index climbed to a historical high of $5.9058, rising further from the previous value of $5.5953, indicating that local price increases have far exceeded the pace of Lira depreciation. Under the double blow of the official push for "real exchange rate appreciation" and the 27% minimum wage hike in early 2026, the US-dollar-denominated cost of living in Turkey has surged, meaning it is no longer a cheap tourism or manufacturing base.

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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