![]() ![]() In the Big Mac index, the basket in question is a single Big Mac burger as sold by the McDonald's fast food restaurant chain. One suggested method of predicting exchange rate movements is that the rate between two currencies should naturally adjust so that a sample basket of goods and services should cost the same in both currencies (PPP). The working-time based Big Mac index might give a more realistic view of the purchasing power of the average worker, as it takes into account more factors, such as local wages. UBS Wealth Management Research has expanded the idea of the Big Mac index to include the amount of time that an average worker in a given country must work to earn enough to buy a Big Mac. The index also gave rise to the word burgernomics. However, if you’re interested to see a tastier than usual look at cost of living (and relative wages) this is a pretty good big picture breakdown.The Big Mac index was introduced in The Economist in September 1986 by Pam Woodall as a semi-humorous illustration and has been published by that paper annually since then. So, if you’re looking to buy a Big Mac, you should get the price from the menu board near you. Since states are big and offer a diverse range of cost of livings, this price may not reflect the price you see at the drive-thru.įor example, densely populated areas often have higher prices, an eater in a rural city may see a lower price. We opted to only include the Big Mac, and not the meal price. Our data on Big Mac prices comes from .įrom there, we found the average Big Mac price in each state- identifying the most (and least) expensive states. How We Determined This - And What It Means In general, the Midwest is a pretty cheap place to visit Mickey D’s. Mississippi is the cheapest with the trademark burger only coming to $3.91. In the 12 states above, a Big Mac for $4.07 or less. Notoriously pricy Hawaii goes as high as $5.31. A Big Mac- not counting fries or a drink- costs over $4.65 in all of them. McDonald’s isn’t quite so cheap in the above states. Keep reading to see the priciest (and cheapest!) places to get your Big Mac- and how we determined this. If you make it a value meal it will set you back $5.99.īut how much you pay will vary dramatically based on where you live. While you can’t get a degree in Burgernomics, you can see the difference when looking at menu prices across the country. ![]() The cost of a Big Mac has become more than just how much your favorite burger at McDonald’s costs and transcended to a whole economic theory. ![]()
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