The Big Mac index is a guide to alignment of world currencies in regard to the US dollar and is based on comparing price for a McDonald’s Big Mac in various countries. In January 2013 a burger in Russia cost $2.43 at market exchange rates, while in the United States the price was $4.37. So the “raw” Big Mac index shows that the ruble was undervalued by 44.5%. This means, the US dollar exchanges to the Russian ruble at 1/30.5 rate, while its actual rate should be 1/16.69, according to the index.
The Big Mac index…
Yes a Big Mac is only $2.08 near us in Russia. I am always amazed how cheap McDonald’s is in Ukraine and Russia, compared to America! In fact a few months ago we bought a Big Mac in the heart of Moscow and it ran 76 rubles. That is around $2.53 per Big Mac and it is located in one of the most expensive cities in the world… (That is what they say! I don’t see it…)
To top it all off, it is the exact same food! I mean exactly…
Hmm, you should be doing some thinking’s…
That is some serious inflation in America, because when I left America years ago. A big Mac was under $3 (My last Big Mac – American made was $2.58 in Covington, Kentucky – seven years ago…) and my first one in Russia was over $2 even then. Basically the price in Russia has stayed dormant and in America it has rocketed..
Kyle Keeton
Windows to Russia…
P.S. These are averages for the countries. So your price could be more or less for your Big Mac. Mine is less and I have seen them many times below $2 in Russia…