The Big Mac index: Vietnam

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

In the first quarter of 2026, Vietnam's Big Mac Index fell to $2.8948, a slight retreat from $2.9088 in the previous quarter, firmly remaining below the $3 mark. This data reflects that the Vietnamese dong continues to suffer from severe double-digit undervaluation under the purchasing power parity (PPP) benchmark. However, with the US Federal Reserve initiating an interest rate cut cycle, the depreciation of the dong and imported inflation pressures are expected to ease significantly in the short term.

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AI Data Insight

In the first quarter of 2026, Vietnam's Big Mac Index fell to $2.8948, a slight retreat from $2.9088 in the previous quarter, firmly remaining below the $3 mark. This data reflects that the Vietnamese dong continues to suffer from severe double-digit undervaluation under the purchasing power parity (PPP) benchmark. However, with the US Federal Reserve initiating an interest rate cut cycle, the depreciation of the dong and imported inflation pressures are expected to ease significantly in the short term.

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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