The Big Mac index: South Africa

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 Q1 2026, South Africa's Big Mac Index reached USD 3.3599, a significant jump from the previous USD 3.017 (Q3 2025), setting a new record high since data tracking began. Although the index suggests the South African Rand has been undervalued for a long time, easing domestic inflation pressures and power sector structural reforms are providing bottom support for South Africa's exchange rate and economic fundamentals.

You May Also Like

AI Data Insight

In Q1 2026, South Africa's Big Mac Index reached USD 3.3599, a significant jump from the previous USD 3.017 (Q3 2025), setting a new record high since data tracking began. Although the index suggests the South African Rand has been undervalued for a long time, easing domestic inflation pressures and power sector structural reforms are providing bottom support for South Africa's exchange rate and economic fundamentals.

You May Also Like

Other Industry

Semiconductor
Display
LED
Energy
Electronics
Telecom
Emerging Tech
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