The Big Mac index: Venezuela

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

The latest 2026 Q1 data shows Venezuela's Big Mac Index sliding to $4.0453, a decline of approximately 3.8% from the previous value of 4.207, continuing the downward trend seen since 2024. This phenomenon reflects that the depreciation of the Bolivar exchange rate is faster than local price inflation, causing prices of goods denominated in US dollars to trend relatively lower.

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AI Data Insight

The latest 2026 Q1 data shows Venezuela's Big Mac Index sliding to $4.0453, a decline of approximately 3.8% from the previous value of 4.207, continuing the downward trend seen since 2024. This phenomenon reflects that the depreciation of the Bolivar exchange rate is faster than local price inflation, causing prices of goods denominated in US dollars to trend relatively lower.

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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