The Big Mac Index
Jan 4th, 2008 by Nick
The Economist calls the Big Mac Index “arguably the world’s most accurate financial indicator to be based on a fast-food item.” The idea is that a Big Mac is a Big Mac regardless of the country, and so the cost of one is an excellent indicator of how far your money will take you in another country.
I would argue that we should extend the logic to other food items. My quick research in Manly shows that compared to downtown Chicago is that you should expect to pay 70-110% more for your food. Based on a few sit-down restaurant menus I’ve seen, I think that the average (90% more) is accurate.
- McDonalds
- Big Mac: A$4.75 to US$2.99 - 1.6
- Sausage McMuffin: A$3.50 to US$2.05 - 1.7
- Subway BMT: A$7.50 to (I think) US$3.99 - 1.88
- 7-11
- 20 oz/600 ml name brand but not fancy bottled water: A$2.20 to US$1.19 - 1.85
- 20 o/600 ml Diet Coke: A$3.30 to US$1.40 - 2.35
- 2 oz bag of name brand potato chips : A$2.20 to US$1.09 - 2.0
