The Big Mac index: United States

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

The US Big Mac Index reached $6.12 in the first quarter of 2026, continuing to climb from the previous value of $6.01 in the third quarter of 2025, and officially stabilizing above the $6 mark. Amidst inflation driving up food and labor costs, the pricing of fast-food operators like McDonald's not only reflects changes in the purchasing power of the US dollar but also highlights the consumption pressure faced by low- and middle-income classes. The market is closely monitoring how this wave of "fast food fatigue" will force companies to reshape their pricing and promotional strategies.

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AI Data Insight

The US Big Mac Index reached $6.12 in the first quarter of 2026, continuing to climb from the previous value of $6.01 in the third quarter of 2025, and officially stabilizing above the $6 mark. Amidst inflation driving up food and labor costs, the pricing of fast-food operators like McDonald's not only reflects changes in the purchasing power of the US dollar but also highlights the consumption pressure faced by low- and middle-income classes. The market is closely monitoring how this wave of "fast food fatigue" will force companies to reshape their pricing and promotional strategies.

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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