The Big Mac index: Taiwan

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 the first quarter of 2026, Taiwan's Big Mac Index was reported at $2.47, a significant drop of 7.1% from the previous value of $2.66, reflecting the recent depreciation of the Taiwan Dollar (TWD) against the US Dollar. Although local prices in Taiwan remained relatively stable, exchange rate factors have caused the TWD to remain severely undervalued in terms of Purchasing Power Parity (PPP), with the price gap against the US Big Mac remaining substantial.

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AI Data Insight

In the first quarter of 2026, Taiwan's Big Mac Index was reported at $2.47, a significant drop of 7.1% from the previous value of $2.66, reflecting the recent depreciation of the Taiwan Dollar (TWD) against the US Dollar. Although local prices in Taiwan remained relatively stable, exchange rate factors have caused the TWD to remain severely undervalued in terms of Purchasing Power Parity (PPP), with the price gap against the US Big Mac remaining substantial.

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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