Which magazine publishes the "Big Mac Index" comparing currencies?

The Economist publishes the Big Mac Index, a well-known informal comparison of currency values. Introduced in 1986, the index uses the price of McDonald’s Big Mac hamburgers in different countries to illustrate purchasing power parity, or PPP.

PPP is the idea that exchange rates should eventually make identical goods cost roughly the same in different currencies. A Big Mac is useful for a simple comparison because it is sold internationally and combines many local costs, including ingredients, labor, rent, taxes, and distribution. If a burger is much cheaper in one country after currency conversion, that currency may appear undervalued against the other.

The index is designed as an accessible teaching tool rather than a precise forecasting model. Burger prices vary for local reasons, and Big Macs are not identical economic baskets. Wages, taxes, competition, import costs, and restaurant pricing policies can all affect the result.

The idea has also inspired the informal term “burgernomics.” The Economist has published adjusted versions that account for local income levels, helping readers distinguish between simple price gaps and broader purchasing-power differences.