The Economist magazine’s latest Big Mac index suggests your money is likely to go furthest in mainland China and Hong Kong and to disappear most rapidly in Norway and Switzerland.
The index is based on the idea of purchasing-power parity (PPP), which says currencies should trade at the rate that makes the price of goods the same in each country.
If the price of a Big Mac translated into dollars is above $3.57, its cost in the US, then a currency is dear; if it is below that benchmark, it is cheap. So, Hong Kong ($1.72), China ($1.83) and Thailand ($1.89) seem very competitive, while most European countries do not. The price in Switzerland comes in at $5.53 while in Norway it’s an eye-watering $6.15.
A Big Mac in Australia is a competitive $3.37 and in New Zealand it’s $3.08. The UK, meanwhile, has seen prices fall making it more competitively priced on the burger front ($3.69) and hopefully bringing better news for manufacturers and exporters.
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