The Big Mac index: Venezuela

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

According to the latest data, Venezuela's Big Mac Index fell to $4.0453 in the first quarter of 2026, continuing its decline from $4.207 in the third quarter of 2025. Despite facing extremely high hyperinflation domestically, the dollar-denominated price of a Big Mac in the country has decreased rather than increased, caught in the grip of the drastic depreciation of the fiat currency, the Bolivar. Going forward, close attention must be paid to the impact of macroeconomic policy changes and foreign exchange reserves on local real purchasing power.

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AI Data Insight

According to the latest data, Venezuela's Big Mac Index fell to $4.0453 in the first quarter of 2026, continuing its decline from $4.207 in the third quarter of 2025. Despite facing extremely high hyperinflation domestically, the dollar-denominated price of a Big Mac in the country has decreased rather than increased, caught in the grip of the drastic depreciation of the fiat currency, the Bolivar. Going forward, close attention must be paid to the impact of macroeconomic policy changes and foreign exchange reserves on local real purchasing power.

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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