“The Big Mac Index” lets you know how much your money is worth when you go on holiday

The principle of the index is based on the fact that fast food restaurant McDonalds' Big Mac is a product made the same way and with the same ingredients all over the world. However, it doesn’t cost the same everywhere, partly because of the difference in food cost, inflation and wages between one country to another.

Chris Sugira immediately cites the following example. "Here in Europe, a Big Mac costs about 5 euro, but in Taiwan you pay 2 euro. This shows that 5 euro in Taiwan is worth more than 5 euro is here in Europe. The  index gives you more or less an idea of how much your euros in another country."

So from the price of a Big Mac, you can see how expensive or cheap a country is to eat, stay or live in. This is why it is interesting to consult the index when choosing your travel destination. 

"It may not be an exact science, but it allows you to estimate what your purchasing power will be in another country and how much you can expect to spend".

The Big Mac index or Citizennomics was devised by British magazine ‘The Economist’ in 1986 as "an informal way of measuring and comparing purchasing power between currencies". The index is updated twice a year and can be found free-of-charge The Economist’s website.

Not unsurprisingly Switzerland is the country where a Big Mac cost the most. "It is common knowledge that Switzerland is an expensive country, but using the Big Mac Index you get an idea of how expensive the country is. There, a Big Mac currently costs 7 euros."